The US stock market ended the final trading day of October with a sharp fall in technology shares. Intel shares lost nearly 29% of their value in a single session, recording their worst performance in over 50 years. Investors sold off technology company shares en masse due to concerns over the huge costs associated with artificial intelligence.
- On 30 October, Intel’s share price plummeted by 28.58% — the biggest one-day fall since 1974.
- The Nasdaq fell by 2.86%, whilst the S&P 500 dropped by 1.82%.
- AMD shares fell by 10.9%, Nvidia shares by 4.2%, and SanDisk shares by approximately 13%.
- Investors fear that the massive expenditure by technology companies on artificial intelligence will not yield the expected returns.
Intel lost nearly a third of its value in a single day
Shares in an American processor manufacturer Intel plummeted by 28.58%, closing at $65.76 each. This is the company’s sharpest one-day fall since 1974.
The sell-off began following the publication of Intel’s financial forecast, which turned out to be significantly weaker than analysts had expected.
The company forecasts fourth-quarter revenue of $15–16 billion, which is more than $1 billion below market expectations. Management has also warned that it does not expect a positive cash flow this year.
Despite a rise in quarterly revenue to $16.5 billion, Intel is facing weak demand for personal computers, a shortage of components and rising memory costs.
The slump has affected Nvidia, AMD and other technology companies
The negative reaction from investors spread across the entire technology sector. At the close of trading on 30 October:
- Intel — a fall of 28.58%;
- AMD — by 10.9%;
- Nvidia — by 4.2%;
- SanDisk — approximately 13%;
- Dell — by 10.81 TP3T;
- HP — by 9.61 TP3T.
The Nasdaq Composite technology index fell by 2,86% to 25,437 points. This marked its biggest one-day fall since June.
The S&P 500 index fell by 1.82%, whilst the Dow Jones Industrial Average fell by 1.09%.
Investors are concerned about the costs of artificial intelligence
One of the main reasons for the sell-off was the fear that technology companies are spending far more on the development of artificial intelligence than they can quickly recoup in the form of profits.
Microsoft, Meta, Amazon and Alphabet are investing tens of billions of dollars in the construction of data centres, the purchase of equipment and the development of AI infrastructure.
According to Capital Economics, these four companies account for more than a third of the capital expenditure of S&P 500 constituent companies over the last 12 months.
Amazon and Alphabet’s earnings reports added to the pressure, heightening concerns about rising costs and a decline in free cash flow.
Amid the clearance sale Nasdaq October ended with the worst monthly performance since March 2025.
