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Shares of Intel, Reddit and Amazon dropped as investors reacted to heavy AI infrastructure spending and signs that AI-driven search tools are cutting into traditional web traffic. The sell-off hit multiple major tech names on the same trading day, reflecting broader unease about AI-related costs and revenue risks.
Amazon shares fell about 7% and Intel dropped roughly 25% in premarket trading after both companies reported September-quarter results that missed investor expectations. Amazon missed on revenue and profit while keeping its 2026 capital expenditure forecast at $220 billion and reporting a larger negative free cash flow for a second straight quarter. Intel gave weaker-than-expected guidance, citing continued softness in the PC market, while chip peers like Micron, Nvidia, Arm and ASML also declined.
Memory and data storage stocks, including Micron, SanDisk and SK Hynix, rose today after pulling back from record highs reached this summer. The gains follow a stretch of declines for memory chip makers in recent weeks.
Jim Cramer told CNBC viewers Tuesday that the two-day rally in AI stocks, sparked partly by a $63 billion financing package from banks and Blackstone backing Anthropic's purchase of Broadcom hardware, doesn't mean risks to the data-center trade have passed. He flagged continued borrowing stress at smaller 'neocloud' infrastructure firms like CoreWeave, Nebius and Iren, and questioned why Anthropic is financing its hardware purchases with debt rather than its own profits.
OKXICE, the joint venture between OKX and Intercontinental Exchange, has added Intel, Oracle, IBM and IonQ to its public notice of companies declining to have their shares tokenized, bringing total objections to 26. That means roughly 37% of companies on OKXICE's original list have opted out, following earlier objectors like Microsoft, Alphabet, Goldman Sachs, Cisco and Wells Fargo.
Tech stocks extended gains for a second session, with optimism over Anthropic's planned Nasdaq listing continuing to lift AI-related shares in Asia, Europe and the US. Anthropic's S-1 filing reportedly spans more than 300 pages and outlines a governance structure giving founders outsized control relative to everyday shareholders. Separately, the Federal Reserve begins a two-day meeting today, with a policy decision due Wednesday at 2 p.m. ET.
Elon Musk said on X that more than 200 'neocloud' companies could face mass failure and consolidation, citing tightening debt markets that now favor firms with revenue beyond AI data centers. Shares of Nebius, CoreWeave and Iren fell more than 4% in premarket trading Monday before paring losses. Musk's comments came in response to a post from Social Capital founder Chamath Palihapitiya, who warned of stranded, underutilized compute capacity emerging by 2027.
Several major public companies have told a crypto trading platform to stop offering tokenized versions of their shares without authorization. The companies named include Microsoft, McDonald's and Verizon, who pushed back against the practice of issuing blockchain-based tokens meant to track their stock prices.
Gains tied to artificial intelligence companies have contributed an estimated $138 billion to the investment portfolios of 13 public pension funds since 2022, according to reporting on the funds' performance. The rally has helped these funds recover from losses tied to the last financial crisis, even as some politicians grow more critical of the AI industry.
The S&P 500 fell 1.3% on Thursday, extending steeper declines seen earlier in Asian markets, as shares tied to artificial intelligence companies pulled indexes lower worldwide. Oil prices climbed to their highest point since May amid concerns over the conflict involving Iran.
Tesla's third-quarter results topped estimates but shares fell after lower average car prices, a battery supply crunch, and Elon Musk's comment that Robotaxi expansion won't accelerate this quarter. Meta initially rallied on a sales beat but turned negative in premarket trading, while separately offering Mark Zuckerberg a new stock class tied to an eight-year California residency commitment. Broader futures declined alongside chip stocks as Asian and European markets also traded lower.
Bitwise's latest quarterly report shows tokenized stock trading rising sharply on platforms like Robinhood Chain, Hyperliquid and Solana, with Robinhood Chain's volume jumping from $526 million in July to $11.31 billion in September. At the same time, Goldman Sachs, Microsoft, Qualcomm, Caterpillar, McDonald's, Western Digital and Alphabet have formally objected to having tokenized versions of their shares traded on OKXICE, a venue launched by OKX and Intercontinental Exchange, joining earlier objectors like CoreWeave and UnitedHealth.