US tech stocks slide on AI buildout cost fears; Nasdaq opens down 2.5%

US tech stocks see sharp falls over AI cost fears

US tech stocks kept falling as investors worried about rising AI buildout costs and the returns on huge spending. Nasdaq opened down 2.5% on Friday. Intel fell as much as 30% after saying cash income won't cover spending this year. Amazon's results missed expectations, with spending up sixfold in three months. Alphabet lost over $500bn in market value Thursday as its AI summaries hit core search ad revenue, and Reddit warned Google's AI search is hurting referral traffic.

Why it matters: Intel and Amazon keep raising AI spending under cash pressure, while Google's AI search is already hitting ad revenue and traffic to outside sites.