Intel posted its worst single-day stock decline on record as investor anxiety over artificial intelligence spending reached new highs.
The selloff capped a brutal week for the AI trade, which had powered much of the market’s gains over the past year. Cracks that had been building for weeks widened sharply.
Mounting doubts about whether the massive spending on AI infrastructure will pay off drove the retreat. Investors questioned timelines for returns on those investments.
Intel’s plunge came despite the company’s push into AI chips. The scale of the drop underscored how quickly sentiment has shifted.
The pullback spread beyond Intel. Other chipmakers and AI-linked stocks also fell as investors reassessed lofty valuations.
Some analysts said the move reflects growing caution rather than a full reversal. Profit-taking after a long rally played a role in the selling.
Investors now face a key question: whether the AI boom can justify its price tag. The coming earnings season may offer the first real test.
