Friday AI-spend selloff escalates: Nasdaq suffers worst day since June as Intel plunges 30% and most Mag 7 hits correction (Oct 30)
What happened
Wall Street suffered its steepest losses since June on Friday as the AI-spend revolt escalated: the Nasdaq Composite dropped more than 3.8%, the S&P 500 fell 2.5%, and the Dow fell 770 points (-1.5%). Intel plunged more than 30% after weaker-than-expected Q4 guidance tied to a faltering PC market and manufacturing bottlenecks. Nvidia fell 5.6% and a chipmaker index sank 9% as investors questioned returns on Big Tech's AI splurge. More than $2 trillion in market value is set to be wiped from the Nasdaq 100 in October alone. By the close, Alphabet and Meta were in bear-market territory (down 20%+ from recent highs), while Amazon and Nvidia joined the correction club (down 10%+). The outlier was Tesla, up about 5% on the week and the only Mag 7 name plus Microsoft and Apple to avoid correction or bear-market status. Amazon's Q3 report — EPS of $1.89 vs $1.97 consensus, free-cash-flow negative with full-year capex running toward $220B — added fuel to the fire.
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Start your free 14-day trialWho’s affected
- Intel (INTC) — plunged 30%+ Friday on weak Q4 guidance, PC weakness, manufacturing bottlenecks
- Nvidia (NVDA) — fell 5.6% as AI-spend ROI doubts threaten its hyperscaler customer capex
- Alphabet (GOOGL) — down another 1.5% Friday after Thursday's record drop; bear market (-30.4% since May 13)
- Amazon (AMZN) — free-cash-flow negative on $220B annual capex; correction territory (-16.4% since Aug 3)
- Meta (META) — bear market (-21.5% since Aug 2025 peak) on dilution and cash-burn fears
- Chipmaker index — sank 9%; ServiceNow fell 27% Thursday (worst day on record)
- Microsoft (MSFT) and Apple (AAPL) — relative safe havens, avoided correction; Tesla (TSLA) rose ~5% on the week