Nasdaq Weakens on AI Spending Concerns and Chipmaker Rout

The tech-heavy Nasdaq Composite fell 0.63% on Friday, closing out its second consecutive weekly decline as investors grew wary of the enormous capital being poured into AI infrastructure ahead of a fresh round of megacap earnings. The Philadelphia SE Semiconductor Index tumbled roughly 4.5% on the session, dragging chip stocks broadly lower even after INTC forecast quarterly profit and revenue above Wall Street estimates and detailed plans to raise spending over the next two years; Intel shares still sank 7.9% as the guidance failed to ease concerns about the return on AI investment.

Beyond chips, stocks including PSKY, UBER, QCOM, VZ, and INTC were in focus as the broader market absorbed both earnings-season jitters and a spike in oil prices. Brent crude touched $102 a barrel earlier in the week before easing nearly 4% to settle at $96.78, with the elevated energy backdrop compounding pressure on risk assets already nervous about AI spending payback timelines. For the week, the S&P 500 slipped 0.6% and the Dow eased 0.4%, while the Nasdaq's 2.1% weekly drop underscored how concentrated the damage was in tech and semiconductors.

The selloff highlights a widening gap between hyperscalers' AI capex commitments and investors' patience for seeing a return on that spending. With several megacap earnings reports still ahead, traders will be watching guidance on AI infrastructure budgets, semiconductor demand signals, and any further move in oil prices or geopolitical tension as catalysts that could determine whether this pullback deepens or proves a buying opportunity for long-term holders.

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