Intel and Amazon shares plunged following their earnings releases during U.S. trading hours. Intel's revenue outlook for the current fiscal year fell below market expectations, and its shares closed down approximately 29%. Amazon came under pressure after a shortfall in third-quarter total revenue and the scale of its investment raised investor concerns, and its shares entered a downward trend after the market opened.
Intel's earnings, released on 30 October U.S. time, included a revenue outlook below market expectations, sending its shares down 29% shortly after trading opened on the 30th. The company said it would make large-scale, long-term investments in research and development and manufacturing facilities, while acknowledging that it was uncertain whether these investments would generate favorable returns.
On the same day, Amazon announced that its third-quarter total revenue had fallen short of market expectations and that capital expenditure had reached $77.3 billion. Its shares fell approximately 7% in premarket trading and remained down approximately 3% after the market opened.
The earnings announcements from Intel and Amazon further weakened investor sentiment, which had already cooled following Alphabet's disappointing results the previous day. Alphabet, Google's parent company, saw the market-wide decline in market capitalization reach historic proportions, and its shares also fell on the morning of the 30th.
After trading opened on the 30th, declines spread across the tech sector, with Nvidia down 3%, Tesla down 2%, Meta and Apple each down 1%, and Microsoft also down approximately 1%. This suggests that investors are once again wary of the risks of AI infrastructure investment.