London, 30 October 2026 — EBM Newsdesk Analysis — By Nick Staunton
The AI trade is unravelling. Intel lost a quarter of its value and Amazon fell close to 7% after disappointing quarterly results, dragging technology stocks lower around the world and sending investors running for safe havens.
It caps a dismal results season for the companies building the AI boom. Alphabet plunged 10% earlier this week as its spending pushed cash flow into the red, and Meta is still dealing with the fallout from its own results after committing up to $145bn to AI. Only Microsoft has won investors’ approval.
Intel and Amazon Disappoint
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SubscribeIntel’s 26% plunge came after it cut its guidance for the rest of the year, and its earnings and revenue fell well short of forecasts. Amazon’s revenue and earnings both missed expectations, and it confirmed plans to spend $220bn on capital investment this year, a figure that now worries investors more than it excites them.
Futures on the Nasdaq 100 fell more than 2% in European trading, and the S&P 500 dropped 1%. The Dow was unchanged, largely shielded from the tech sell-off. Chip stocks were hit hardest: the iShares Semiconductor ETF fell more than 6%. Data centre operator CoreWeave dropped 6.7% and has lost more than half its value since August, while rival Nebius is down 37% this month.
Asia’s Chipmakers Tumble
The pain spread quickly to Asia, reversing the rally that chip stocks led just days ago. South Korea’s Kospi fell 3.5% and is now down more than 38% from its June peak. Memory chip giants SK Hynix and Samsung Electronics fell 7.1% and 3%. In Japan, the Nikkei dropped 2.1%, SoftBank fell 6% and memory chipmaker Kioxia slumped 7.1%.
The Bank of Japan held rates and declared victory in its long battle against deflation, with inflation now holding around its 2% target. But Japanese shares fell after it said it would speed up sales of the exchange-traded funds it holds. Hong Kong’s Hang Seng bucked the trend with a 1.5% gain.
A Rush to Safety
The sell-off has triggered a flight to safety, but not into the dollar. Investors have instead bought the Japanese yen and Swiss franc, traditional havens that had been out of favour. US Treasuries were the biggest winners, with yields falling back to levels last seen at the start of the month, before the bond rout gathered pace.
The Federal Reserve held rates on Wednesday, as expected ahead of next week’s mid-term elections. But inflation remains a problem: core PCE, the Fed’s preferred measure, rose to 3.1% from 3%. If the tech sell-off deepens, markets may start pricing in rate cuts in December rather than rises.
Crypto and Gold Under Pressure
Bitcoin broke below $80,000 and fell towards $76,000 after news of the record heist at Binance, the world’s largest crypto exchange. Analysts see $75,000 as the next key support level.
Gold and silver also slumped despite a weaker dollar. Gold is back below $4,000 an ounce, while silver appears headed for a test of $50. That level is significant because it is where silver peaked in its 2011 rally.
Oil Stays High
Oil remains the exception. Brent and WTI are trading above $100 a barrel for contracts running into February, as the war with Iran enters its ninth month. Explosive devices attached to a tanker in the Strait of Hormuz were detonated this morning, and Washington continues to threaten strikes on Iran after the mid-terms. High prices are good news for some: Europe’s oil majors are handing back billions to shareholders.
The Call
This week’s results have changed the mood on AI. Investors are no longer rewarding spending for its own sake; they want proof it is paying off, and most of the big players have failed to show it. Intel’s collapse and Amazon’s $220bn spending bill have turned doubt into selling, and the pain is spreading to chipmakers, data centre operators and Asian markets. The flight into Treasuries, the yen and the franc shows how nervous investors have become. Unless next quarter brings clear evidence of returns, expect the AI trade to keep deflating, and the Fed to come under growing pressure to cut rates rather than raise them.
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