Did you know? US$1 trillion vanished from US tech stocks in a day. Intel fell 28%, here's why

Wake up on Saturday, open Instagram, and the screen is full of red: "US$1 trillion wiped out from the US stock market today." It isn't clickbait.

On Friday, 30 October 2026 (US time), American tech stocks went through a massive sell-off. According to NBC News, tech stocks lost about US$1 trillion in value in a single day as worries about the "AI boom" deepened.

Important: This article is for educational purposes only and is not investment advice. Stock markets can rise and fall sharply.

How bad was it?

According to the closing figures reported by Yahoo Finance:

• Nasdaq Composite: down 2.92% to 25,420.96
• S&P 500: down 2.08% to 7,559.67
• Dow Jones: down 1.25% to 51,689.03

The Nasdaq was also heading for its worst month since March 2025, the same report said.

Intel: its worst day since 1974

The day's biggest headline (or casualty) was Intel. Its shares fell about 28.6% to US$65.76 (MT Newswires). According to TheStreet, it was Intel's worst day since 1974.

Oddly enough, Intel's third-quarter results actually beat expectations (Investing.com):

• Revenue rose 21% to US$16.5 billion
• Data centre and AI revenue jumped 78%

The problem was the fourth-quarter forecast:

• Revenue expected at US$15 to 16 billion, versus analysts' US$17.08 billion
• Earnings per share expected at US$0.25, far below the expected US$0.44
• Gross margin expected to fall to 38%, from 44.1%

Intel blamed a weak PC market, which it expects to last at least through the first half of 2027. TheStreet also reported the impact of a factory accident at Intel's site in Israel.

Did you know? The US government itself is an Intel shareholder. According to 24/7 Wall St., the US Commerce Department has held more than 433 million Intel shares since August 2025, and that stake lost about US$11 billion in value in the first few hours of trading.

Intel's slide dragged other chip stocks down too. According to TheStreet, AMD fell as much as about 12% and Nvidia almost 5% during the session.

Reddit: almost 30% gone

Reddit fell about 29% to US$91.73 (MT Newswires). Among the reasons:

• A fourth-quarter revenue forecast below Wall Street expectations (TheStreet)
• Daily active users weaker than expected (Yahoo Finance)
• Plans to limit forum access to logged-in users, in favour of a smaller but more engaged community

Roblox: fewer players

Roblox fell about 18% to US$42.99 (MT Newswires). Its results actually beat expectations, but daily active users fell 9% to 138 million (Yahoo Finance) after stricter child-safety measures. Roblox also forecast fourth-quarter bookings down 10% to 15% (StockTitan).

Why is everyone suddenly worried about AI?

The key was Amazon. Its results, released at the same time, showed negative free cash flow of more than US$42 billion for the 12 months to September, a record, driven by about US$77 billion of capital spending in a single quarter, mostly on AI (Yahoo Finance).

Investors started asking: tech companies are spending huge sums on AI, but when will the profits arrive?

Daniela Hathorn of Capital.com summed it up to TheStreet:

"Strong AI demand is no longer enough on its own."

In other words, strong AI demand alone no longer keeps investors happy. They want to see real profits.

What does it mean for Malaysia?

• Intel has major operations in Penang and Kedah. Its assembly and test plants there are among its largest outside the US, so the company's fortunes are closely watched in Malaysia.
• Many Malaysian retail investors now buy US stocks through online trading platforms. A big one-day drop like this hits their portfolios directly.
• Asian markets can feel it. Even before Wall Street opened, Japan's Nikkei had closed 2.12% lower, dragged by chip stocks (StockTitan).

Wall Street reopens on Monday, 2 November (Monday night Malaysia time).

Lessons for new investors

• Good results can still sink a stock if the outlook disappoints. Markets look ahead.
• One company can drag a whole sector. When Intel fell, other chip stocks followed.
• Don't put all your eggs in one basket. Diversification helps soften the blow when one sector is sold off heavily.

Do you hold US tech stocks? Share your experience in the comments.