Chip wreck and AI spending fears put Big Tech on the defensive

The week in 4 points

1. Intel sparks a sector-wide chip rout

   Intel's disappointing results sent its shares down 24.4% and dragged the broader semiconductor space with it. The Nasdaq fell nearly 975 points on Friday alone, its worst single day since June, with AMD, Broadcom, and Applied Materials all hit hard.

2. AI spending puts Big Tech cash flow under pressure

   Amazon missed Q3 expectations and its heavy AI capital spending rattled investors. Alphabet closed October with a $766 billion market-cap loss, its worst month ever, after a Q3 miss paired with higher AI spending prompted analysts to cut its fair value estimate. Meta announced a $95 billion equity raise to fund AI, sen

3. Microsoft announces 60,000 buyouts

   Microsoft offered voluntary separation packages to roughly 60,000 employees, about a quarter of its global workforce, as it redirects costs toward AI infrastructure. Microsoft did beat EPS estimates for the period, with analysts focused on its AI and cloud trends.

4. Energy and health care bucked the selloff

   Health Care was the week's best-performing sector, up 3.1%, with 96% of reporting health care names beating estimates. Energy added 1.0%, with Exxon Mobil beating earnings and Brent crude approaching $120. AbbVie also lifted its 2026 guidance after immunology and neuroscience sales beat estimates.

Health Care +3.1%

Materials +2.8%

Utilities +2.0%

Consumer Discretionary +2.0%

Industrials +1.7%

Real Estate +1.4%

Consumer Staples +1.3%

Financials +1.1%

Energy +1.0%

Technology −2.0%

Communication Services −5.3%

Biggest movers in the S&P 500

What to watch this week

• Apple reports fourth-quarter earnings Monday after the close, with iPhone 18 sales the key number to watch.
• Advanced Micro Devices, Qualcomm, and Arista Networks report mid-week, keeping the chip and AI infrastructure story in focus after last week's rout.
• The monthly jobs report is due this week alongside midterm elections, making it one of the busiest weeks of the year for market-moving data.

Earnings this week

AM = before the open, PM = after the close. Full earnings calendar

Top Picks

See all 20 Top Picks

Smart money

• Pete Sessions (R-TX) reported selling AAPL.
• Kevin Hern (R-OK) reported selling ASML.
• John J. McGuire III (R-VA) reported buying MU.