A multi-fold jump in profits at China’s ChangXin Memory Technologies has triggered another round of selloffs in chip stocks in Friday’s trade on October 30, while disappointing earnings from Amazon and Intel have added to growth concerns on Wall Street.
The losses were led by Intel, which plunged 30%, followed by Advanced Micro Devices (AMD) (12%), Qualcomm (12%), SanDisk (9.7%), Broadcom (5%), Nvidia (4.86%), Micron Technology (4%), and Amazon (2%).
China’s ChangXin Memory Technologies (CXMT) reported a more than sevenfold year-on-year increase in third-quarter revenue to 118.71 billion yuan ($16.7 billion), up 19.3% from the previous quarter, driven by strong demand for memory chips and tight global supplies.
Net profit attributable to shareholders stood at 54.4 billion yuan ($8.17 billion) for the three months ended September 30, compared with a loss in the year-ago period. However, sequential profit growth was more modest at around 3%.
For the first nine months of 2026, revenue reached 269.02 billion yuan, while net profit attributable to shareholders stood at 132.04 billion yuan, reversing a loss of approximately 5.3 billion yuan in the corresponding period last year.
CXMT attributed the improvement to higher memory-chip prices amid tight supply, capacity expansion, and a more favorable product mix.
Massive AI spending weighs on sentiment
E-commerce and cloud giant Amazon reported higher-than-expected capital expenditure in the third quarter, alongside slower growth in its online retail business. The company said it spent more than $77 billion on property and equipment in the third quarter, well above analyst expectations, as it continues to expand data centre capacity and meet growing demand for AI services.
Like its competitors, Amazon has also made a massive spending commitment to developing AI software and infrastructure, forecasting capital expenditure of $220 billion this year.
Intel, meanwhile, warned that it would burn cash this year amid a weak PC market, manufacturing bottlenecks, and heavy spending to expand production.
The chipmaker forecast fourth-quarter revenue and profit below Wall Street expectations. PC chips accounted for roughly half of Intel’s third-quarter revenue. The company expects sales from the segment to decline by more than 20% sequentially this quarter, following a 5% drop in the September quarter.
The market reacted similarly to Alphabet’s results on Wednesday. The Google parent reported search and advertising sales that reinforced investor concerns about AI’s threat to its core business, sending its shares down 13% at the close Thursday—the biggest drop ever for the stock.
Big Tech deals fail to shield Nasdaq 100 from earnings-driven sell-off
The recent results could be enough to wipe out the Nasdaq 100’s gains at the beginning of this week. The market had initially reacted positively to a slew of big tech news, including Anthropic PBC’s highly anticipated initial public offering filing, Meta Platforms Inc.’s more than $95 billion capital raise, and SpaceX’s $40 billion equipment-finance lease to pay for AI chip purchases.
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