Disappointing quarterly results from Amazon and Intel triggered a broad tech selloff on Thursday, deepening investor anxiety over the sustainability of the AI trade that has driven market gains for months. Both companies issued cautious outlooks that fell short of elevated expectations, sending their shares sharply lower and dragging down the Nasdaq Composite. Amazon's cloud growth decelerated while Intel warned of a weaker second half, reinforcing concerns that the massive capital expenditures flowing into artificial intelligence infrastructure may not translate into near-term profits.
The selloff spread across semiconductor, software, and mega-cap names, highlighting the market's sensitivity to any sign of slowing momentum in the AI narrative. Analysts noted that the reactions reflect a recalibration of valuations after a prolonged rally, with investors demanding clearer evidence of monetization. The downturn underscores the fragile sentiment underpinning the tech sector's leadership, where high multiples leave little room for execution missteps.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing