'Tech carnage': Nasdaq is set to lose $2 trillion in October over AI spending fears as Intel plunges 30%
A Google DeepMind promotional screen introducing Gemini, the AI brand whose new Gemini 4 Carbon model Sundar Pichai unveiled just before Alphabet's earnings call as its shares tumbled over 10%.A two-week Alphabet share-price chart, sourced from Yahoo Finance, showing the plunge that wiped $500 billion from the company's value after profit collapsed 25% to $26.2 billion.
Alphabet, Amazon and Intel all reported earnings that missed Wall Street expectations this week, triggering a cascade of selling that has now wiped roughly $2.5 trillion from the Nasdaq since its 6 October peak. Alphabet suffered its worst single-day fall since its 2004 IPO on Thursday, erasing close to $500 billion in value, while the broader carnage extended into Friday with the index plunging over 3%. Analysts at Saxo warned the sell-off looks 'indiscriminate' as every stock with AI exposure was hit.
Intel's profit warning was the sharpest shock: shares plunged 30%, losing around $123 billion in value, after the chipmaker forecast PC weakness continuing into mid-2027.
Meta's plan for a record $97.5 billion capital raise deepened fears about shareholder dilution across Big Tech, while Alphabet's AI-generated search summaries are now cannibalising its own advertising revenue.
Millions of British pension and ISA holders face losses, with the FTSE 100 — up 0.2% on Friday — offering little comfort to those exposed to US tech through global tracker funds.
