Amazon and Intel Face a $300 Billion Market Value Loss Due to the Intensifying Wall Street AI Spending Crisis
2026-10-30 20:48:57
According to CoinMeta, Amazon and Intel are facing a market value loss of approximately $300 billion due to AI expenditures and weak chip demand, which has hit Wall Street, causing NASDAQ futures to fall by more than 2%. On October 30th, Amazon's stock price dropped by about 7% in pre-market trading, while Intel's stock tumbled by around 25%. Amazon's third-quarter financial report showed that free cash flow deteriorated from a positive $14.8 billion to a negative $42.4 billion, mainly due to increased investments in data centers and infrastructure. The company expects cash capital expenditures of about $220 billion in 2026. Nevertheless, Amazon's Web Services revenue grew by 39% to reach $46 billion. Intel's third-quarter revenue was $16.5 billion, a year-on-year increase of 21%, but the forecast for fourth-quarter revenue is between $15 billion and $16 billion, lower than analysts' expectations of $17.3 billion. This sell-off reflects concerns that the rapid growth in AI infrastructure expenditures may outpace the company's ability to demonstrate sustainable financial returns.
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Source:Coinpaper
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