US tech shares fell sharply on Friday as Intel dropped as much as 30% and the Nasdaq hit its lowest opening in over two months, following Alphabet's $500bn loss a day earlier.

US technology stocks slid sharply on Friday 30 October as investor worries about the rising cost of the artificial intelligence build-out spread well beyond Alphabet. According to the BBC, the tech-heavy Nasdaq opened down 2.5%, its lowest level in more than two months, while Reddit and Roblox also continued to fall. Intel shares dropped by as much as 30% in early trading after the chip maker warned of a weaker computer market even as it plans to increase spending on AI, putting the company on track to lose more than $130bn in market value.

Intel's finance chief David Zinsner said the company did not expect positive cash flow this year and forecast lower-than-expected fourth-quarter revenue, adding that the PC slowdown would continue at least through the first half of next year. He said equipment investment would be "even more significant" in the coming quarter. Amazon shares fell as much as 6% before recovering after its results fell short of investor expectations; the BBC reported a negative cash flow of $42bn and quoted chief executive Andy Jassy defending the spending. The losses followed Alphabet's drop of just over $500bn in market value on Thursday, after it said its own AI summaries were affecting search advertising revenue, and its stock was down about 1% more on Friday.

A Reuters markets video published on Friday, embedded with this article, says tech shares slumped while the yen was steady and bonds surged toward their biggest monthly gain in nearly three years, as investors sought safety over worries that huge and rising AI spending may not deliver sufficient returns. The video is a market report illustrating the day's moves rather than footage of a single event, and the figures above come from BBC reporting. New York Times headlines describe the wider market as holding on, with the S&P 500 set for a small loss for the month. This article is not investment advice.