Tech stocks lose $1 trillion in a day over AI doubts
This is a news explainer, not buy or sell advice. After reading, you will know how big companies' AI spending reaches chip stocks and computer prices, and what to watch this week.
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On Friday, 30 October 2026, Intel shares fell almost 29% in a single day, their worst day since 1974, AP reported, even though the company's latest quarterly profit beat analysts' expectations.
US tech stocks lost more than $1 trillion in value that day (about 34 trillion baht), NBC News reported. The Nasdaq Composite closed down 2.86%, its worst day since 5 June, and the S&P 500 fell about 1.8%, according to Yahoo Finance.
The question the market is now asking is when the hundreds of billions of dollars big companies are pouring into AI will turn into profit. Joe Tigay, a portfolio manager at Equity Armor Investments, put it briefly in a note to investors, AP reported.
We're moving out of the hopes and dreams phase of the AI trade and into the 'show me' phase
Big companies are still spending heavily, but the market wants to see money come back
It started with results from big companies released the day before.
Amazon CEO Andy Jassy told shareholders the company expects 2026 cash capital spending of about $220 billion (about 7.4 trillion baht), and meaningfully more in 2027, NBC News reported. Most of that money goes into data centres for AI.
The problem is that cash is going out faster than it comes in. AP reported that over the past 12 months Amazon spent $42.4 billion more cash than it brought in (about 1.4 trillion baht). Amazon shares fell as much as 10% after hours on Thursday, because growth in its core online shopping slowed and its AI spending ran higher than expected, before closing Friday down 1.4%, NBC News reported.
Alphabet, Google's parent company, was hit the day before. It lost about $500 billion in market value (about 17 trillion baht), its worst day ever, NBC News reported, after saying it burned more cash in the July to September quarter than in the quarter before.
Put simply, the market is not saying AI is useless. It wants to see when, and how much, the money being spent will come back as profit.
Why this worry lands on chip stocks
Most AI spending becomes revenue for chip companies.
Picture a time when new restaurants are opening all over a city. The people selling ovens and fridges do best of all. But if the owners start to fear diners will not come, the next round of oven orders shrinks before any restaurant closes.
Chip stocks work the same way. Yahoo Finance reported that Nvidia fell because investors fear the big cloud companies will overspend now and then cut back their buying in 2027. That day AMD shares closed down 10.88% and Nvidia shares closed down 4.22%, according to Motley Fool.
Intel had reasons of its own too. It forecast fourth-quarter revenue of $15 billion to $16 billion (about 510 to 540 billion baht), below the roughly $17 billion analysts expected, TNW reported.
Notably, Intel's data centre and AI chip sales grew 78% in the third quarter, but its PC chip sales fell 5%, and Intel expects the global PC market to shrink 12% in 2026 and another 10% in 2027.
AI is pushing up memory prices, so people are buying fewer computers
This part matters to anyone about to buy a new laptop.
Intel CEO Lip-Bu Tan told Bloomberg that memory prices have gone up a lot and that he expects it to be a very severe issue for everyone in 2027, TNW reported. Memory means the DRAM and SSD chips every machine needs, from laptops to AI servers.
The cause is that the big cloud companies can afford to pay more. Shrish Pant, a director analyst at Gartner, said the share of DRAM those companies buy has grown from about 25% two years ago and is expected to pass 40% soon, CRN Australia reported.
Gartner estimates that combined DRAM and SSD prices will rise about 130% by the end of 2026, that PC prices will rise about 17%, and that memory prices should settle around the first quarter of 2027. These are all forecasts, not announced prices.
That means the same AI boom that has data centres buying more chips is making the computers ordinary people buy more expensive, and people are buying fewer of them.
Thai stocks moved less, but a broker warns of more swings
Markets in Asia did not fall by the same amount everywhere.
On Friday, 30 October, South Korea's Kospi fell 3.5% and Japan's Nikkei 225 fell 2.1%, AP reported.
Thailand's SET index closed the morning session on 2 November 2026 at 1,512.69, down 5.90 points or 0.39%, with energy stocks weighing most as oil prices fell, and PTTEP down 3.64%, Kaohoon International reported.
Pi Securities warned that markets could stay volatile because of continued concern about US tech stocks, including negative cash flow and profits that may come in below expectations.
What to watch this week
The news that will show whether the market was right or worried too much arrives in this order, in Thai time.
- Apple and Palantir: report results after the US market closes on 2 November, which is early on 3 November, StockTitan reported. For the Palantir CEO's view on jobs, read Palantir CEO sees 2 paths in the AI era, researchers differ
- US midterm elections: on 3 November, with results starting on the morning of 4 November. For what it means for Thai tariffs, read Democrats may win Congress, but Thai tariffs won't just end
- AMD: reports results after the US market closes on 3 November, which is the morning of 4 November, AMD announced
- Nvidia: reports results on 17 November US time, which is the morning of 18 November, Gotrade reported
If these companies can show clearly that AI spending is starting to come back as revenue, this round of worry may ease. If they cannot, the market will keep asking the same question.
FAQ
Does losing $1 trillion mean the money vanished from the companies?
It is not cash gone from the companies. The figure is the drop in the total market value of the shares as their prices fell that day. If the share prices rise again, that value can come back.
Why did Intel fall harder than other chip stocks?
Intel forecast fourth-quarter revenue below what analysts expected and said PC sales are slowing because memory prices have risen, TNW reported.
Will computers really get more expensive?
Gartner expects PC prices to rise about 17% and memory prices to settle around the first quarter of 2027, but these are all forecasts. Actual prices in Thailand depend on each brand and shop.
Should I sell tech stocks or tech funds?
This story is a news explainer, not investment advice. The decision depends on each person's goals and how much risk they can take. If you are unsure, talk to a licensed investment adviser.
Sources
- NBC News: Tech stocks wipe out $1 trillion in value as concerns deepen about the AI boom
- AP via KSL: Wall Street drops to its worst day since June after the sell-off for tech stocks deepens
- Yahoo Finance: Stock market today, Friday 30 October
- Motley Fool: Intel plunges nearly 29% as weak outlook rattles Wall Street
- TNW: Intel shares sink as memory shortage drags its PC chip outlook
- CRN Australia: Memory prices will stay crazy through to at least 2027, Gartner
- Kaohoon International: SET Index faces selling pressure in energy stocks
- StockTitan: Stock market today, 2 November 2026
- AMD: AMD to report fiscal third quarter 2026 financial results
- Gotrade: Nvidia stock falls 4.2% as Intel outlook hits chips
