AI Stock Rout Broadens as Memory Chips Slump, Intel Fails to Rally

US stocks closed mixed Friday as a deepening AI-linked selloff pushed the Nasdaq lower, despite a 0.45% gain in the Dow. The chip rout spread to memory makers like Micron and Sandisk, and Intel shares fell over 4% even after a strong earnings beat. Elsewhere, Alphabet's record 298% profit jump was overshadowed by its first free cash flow deficit since IPO, while American Express slipped 6% on cautious reinvestment plans.

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U.S. Stocks Close Mixed as Dow Gains, Tech-Heavy Nasdaq Slides The Dow rose 0.45% in a volatile session, while the Nasdaq composite fell 0.64% as AI and semiconductor stocks continued their weeks-long slide. 1 2

Intel Beats Earnings but Shares Slide on AI Spending Worries Intel reported strong AI-fueled data center growth and raised its outlook, yet shares fell over 4% as Wall Street remains skeptical of the payoff from massive capex. 3 4

Micron and Sandisk Tumble as Chip Selloff Broadens to Memory Memory chip makers were the biggest losers in the S&P 500 on Friday, with Micron down 6% and Sandisk falling 7%, signaling the AI rout is spreading beyond logic chips. 5

Alphabet Profit Surges 298% but Free Cash Flow Turns Negative Google's parent posted a massive quarterly profit of $112.1 billion powered by 82% cloud growth. Investors punished the stock anyway after it went free cash flow negative for the first time since its IPO. 6

American Express Drops 6% Despite Beating Q2 Profit Estimates The card issuer beat consensus earnings expectations but saw its stock drop 6% as management opted to invest the upside back into growth initiatives. 7 8

Nvidia and Amkor Partner on $1.5 Billion Chip Packaging Plant The deal between Nvidia and Amkor Technology will boost domestic US capacity for advanced semiconductor packaging. Amkor shares jumped on the news. 9 10