Global tech sell-off deepens and Japan's Nikkei slumps 3% after Amazon and Intel reveal massive AI cash burns

From the Newshound archive · first published 30 October 2026.

Chip and AI-linked stocks were hammered worldwide on Friday after Amazon and Intel reported enormous capital expenditure with little sign of near-term returns, sending both companies sharply lower in after-hours trading and triggering a wave of selling across Asia and Europe. Nomura Securities strategist Maki Sawada warned the rout reflects "growing concerns regarding the profitability of AI investments." Bond markets rallied as investors fled equities, a classic flight-to-safety signal.

Japan's Advantest and Lasertec led the Nikkei's losers, crashing 9.1% and 13.8% respectively.

Ibiden, the circuit-board maker, fell 15.2%, while SoftBank Group dropped 6.7% in Tokyo.

The Bank of Japan is set to announce its rate decision Friday, with markets watching for December hike signals.