US tech stocks see sharp falls over AI cost fears

US tech stocks experienced sharp declines on Friday as investor concerns intensified over the mounting costs of artificial intelligence development. Major companies including Intel (down 30%), Amazon (down 6%), and Google's Alphabet (continuing losses from Thursday's $500bn drop) reported higher-than-expected AI spending that exceeded their earnings growth, raising questions about the profitability of massive AI investments. The tech-heavy Nasdaq fell 2.5% to its lowest level in over two months, with analysts warning the sector may face a broader slowdown as companies struggle with the financial impact of aggressive AI buildouts.