Global chip stocks tumbled Friday after Intel’s ( INTC ) layoffs plan and fears of overspending on artificial intelligence (AI ) by the tech industry unnerved investors.

Intel shares are plunging 24% in premarket trading on the back of a litany of bad news. The chipmaker reported everything from a wider-than-expected second-quarter loss to a grim growth forecast, a dividend halt plan, and a $10 billion turnaround that includes cutting 15% of its workforce.

Shares of Dutch semiconductor-gear maker ASML Holding ( ASML ) are falling 6%, and American depositary receipts (ADRs ) of British chip designer Arm Holdings ( ARM ) and Taiwan Semiconductor Manufacturing Company ( TSM ), the world’s largest contract chip maker, are both dropping 5%.

In Japanese trading Friday, Tokyo Electron, which makes etching machines for semiconductor factories, closed 12% lower and Arm majority owner SoftBank Group fell 8%.

AI Overspending Casts Cloud on Tech Industry

Amazon ( AMZN ) shares are falling about 10% in premarket trading after the tech titan’s third-quarter revenue outlook fell short of analysts’ estimates and ramped up spending on AI initiatives. Amazon spent $17.62 billion in Q2 purchases of property and equipment, a 54% jump from a year ago.

Apart from Facebook parent Meta Platforms ( META ), investors have sold off the delivery giant’s Magnificent Seven peers like Microsoft ( MSFT ) and Google parent Alphabet ( GOOGL ) for perceived overspending on the technology and sparked a tech selloff. Meanwhile, another AI investor favorite, Nvidia ( NVDA ), is down 5%.