Nasdaq slides 2.9% as Intel crashes 29.8% and the chip rout deepens

The Nasdaq Composite was down 2.89% at 25,427.04 at 12:59 p.m. ET Friday, extending a technology selloff as Intel collapsed 29.82% and declines spread through large chipmakers. These are intraday readings and can change before the 4 p.m. close.

The index had fallen 1.38% Thursday to 26,184.72. Measured from Wednesday's 26,549.85 close to Friday's 12:59 p.m. reading, the two-session decline was 4.23%. That compounded calculation is the number behind Friday's headline move: this is a continuation of Thursday's reset, not an isolated response to one company.

Intel is the shock, but not the whole selloff

Intel's drop followed a quarter in which data-center revenue grew sharply, but its next-quarter outlook moved backward. The company's official release forecasts fourth-quarter revenue of $15 billion to $16 billion, below the $16.5 billion just reported, and a 38% adjusted gross margin versus 44.1% in the third quarter. Intel also said the PC slowdown should continue at least through the first half of next year.

Yet AMD's double-digit decline and Nvidia's 4.6% fall show that investors were repricing a wider semiconductor group. The Associated Press reported the Nasdaq was heading toward its worst day since June. Reuters reported that defensive consumer-staples and healthcare sectors were rising while technology fell, evidence of rotation rather than a uniform liquidation.

The cash question is replacing the growth question

Amazon's move was smaller, but its cash-flow statement helps explain the market's common thread. Amazon reported that trailing-twelve-month free cash flow fell to a $42.4 billion outflow, driven mainly by a $94.8 billion annual increase in property and equipment purchases net of proceeds and incentives. The company said that increase primarily reflected artificial-intelligence investment.

That does not mean AI demand disappeared. Amazon's earnings release shows AWS sales grew 39.3% to $46 billion and operating income reached $17.8 billion. Intel reported 78% growth in Data Center and AI revenue. The tension is between strong demand and the cash, manufacturing cost and financing required to serve it.

For traders, the close matters more than the midday low. A recovery into 4 p.m. would reduce the two-session damage; a finish near the intraday reading would confirm a second heavy technology session. For businesses supplying data-center construction, power equipment and cooling, stock prices are an early signal of financing scrutiny, not proof that contracted projects have been canceled. Orders, customer capex guidance and payment terms are the operating evidence to watch.

Sources: Nasdaq quote data for the Composite, Intel, AMD, Nvidia and Amazon, retrieved between 12:59 and 1:01 p.m. ET on October 30; Intel third-quarter results; Amazon third-quarter results; Associated Press; Reuters via MarketScreener. Two-session change calculated by The Company Chronicle. Intraday data can change. This is market information, not investment advice.