US tech stocks slump as Alphabet posts record drop and Intel falls 30%

what happened

A broad selloff in US technology stocks gathered pace this week, with chipmakers, cloud computing groups, cybersecurity firms and software providers all lower. According to Seeking Alpha, the iShares Expanded Tech-Software Sector ETF fell 5.52% over the week, the Dow Jones U.S. Software Index lost more than 3%, and the Nasdaq Composite was down 1.95% at midday Friday.

Alphabet shares fell as much as 13% on Thursday, their largest one-day percentage drop on record, erasing roughly $500 billion in market value. Google reported a rare earnings miss tied to slower search advertising growth and a sharp rise in AI spending. Intel shares plunged about 30% on Friday after its fourth-quarter forecast came in well below Wall Street expectations. The PHLX Semiconductor Sector index dropped 9%.

Amazon shares lost roughly 7%, Fortinet fell about 27%, ServiceNow tumbled more than 25% on Thursday, and Twilio dropped 19% on Friday. Microsoft held up better, with shares down about 2%, and the company moved to raise $25 billion through a bond offering.

why it matters

For markets, this is a sign that worries about AI reshaping traditional software and pushing up corporate spending have returned pressure across the whole tech sector. Raymond James chief market strategist Matt Orton described the move as a pause for reflection rather than a full reassessment of the sector.

market impact

US tech stocks and Nasdaq: earnings-driven selloff weighs on the sector

• ▼Nasdaq Composite pressure down — selloff in technology shares after disappointing earnings and forecasts
• ▼US semiconductor stocks pressure down — Intel, AMD and Nvidia declines drag the chip index lower

instruments