Amazon, Intel shares crash up to 25% in premarket trade as AI spending concerns trigger tech sell-off - What's next?
New Delhi, Oct. 30 -- Shares of Amazon slumped 7.4% in US premarket trading on Friday, October 30, while Intel plunged 25%, as investors fretted over the tech giants' massive cash burn on artificial intelligence (AI), accelerating a rotation out of the technology sector.
The e-commerce and cloud giant reported higher-than-expected capital expenditure and slower growth in its online retail business. The company said it spent more than $77 billion on property and equipment in the third quarter, well above analyst expectations, as it continues to expand data centre capacity and meet demand for AI services.
Amazon reported a cash burn of $7.6 billion in the previous quarter, compared with cash generation of $14.8 billion in the third quarte...
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