Nasdaq Plunges 610 Points as Weak Alphabet, Amazon, Intel Earnings Renew AI Fears

The Nasdaq Composite fell 610 points, or 2.3%, in early trading Friday after disappointing earnings from Alphabet, Amazon and Intel revived concerns about artificial intelligence prospects. The S&P 500 and Dow Jones Industrial Average dropped 1.2% and 0.4% respectively after the opening bell. Intel shares plunged nearly 29% at the open, while Alphabet's Class A stock continued to wobble after sliding more than 12% on Thursday — its worst day since its 2004 IPO as Google. "This has been one of the worst tech earnings seasons in memory, with underwhelming results from a slew of very prominent companies," said Adam Crisafulli, head of Vital Knowledge, in a research note. The misses are heightening concerns that massive AI investments won't deliver Wall Street's expected payoff. Investors are also questioning the debt companies are taking on to fund data center capital expenditures. UBS CIO Americas equities head Ulrike Hoffmann-Burchardi advised clients this week to "diversify beyond AI," citing risks of single-stock concentration.