Amazon and Intel shares fell in after-hours trading on October 29, 2026, following earnings reports that showed the cost of AI investment at Amazon and weakening PC demand at Intel. Amazon shares dropped 7%, while Intel fell 18%.

Key Takeaways

  • Amazon reported a $42.4 billion free cash outflow over the trailing 12 months, driven primarily by higher equipment and property spending.
  • Intel expects the PC slowdown to continue at least through the first half of 2027.
  • Both companies issued fourth-quarter sales forecasts; Amazon’s was below Wall Street expectations.

Amazon and Intel report contrasting pressures

Amazon’s third-quarter net sales rose 12% from a year earlier to $201.9 billion, while operating income increased to $28.1 billion from $17.4 billion. Its AWS cloud division grew sales 39% to $46.0 billion.

Amazon’s third-quarter results also showed a $42.4 billion free cash outflow for the 12 months through September 30, compared with a $14.8 billion inflow in the preceding 12-month period. Amazon attributed the change primarily to increased purchases of property and equipment, largely reflecting AI investment.

The company expects approximately $220 billion in cash capital expenditures for 2026. For the fourth quarter, it forecast net sales of $240.0 billion to $247.0 billion, below Wall Street expectations, and operating income of $28.5 billion to $33.5 billion. Those figures are forecasts, not completed results.

Intel sees PC slowdown extending into 2027

Intel reported third-quarter revenue of $16.5 billion, up 21% year over year. Revenue from its client computing and physical AI group fell 5% to $8.1 billion, while data center and AI revenue rose 78% to $7.3 billion.

Chief Financial Officer David Zinsner said Intel expects the PC slowdown to continue at least through the first half of 2027. Intel forecast fourth-quarter revenue of $15.0 billion to $16.0 billion and diluted earnings of $0.10 per share under generally accepted accounting principles.

Intel also said an explosion at a factory in Israel caused a two-week shutdown and would cost roughly $600 million in lost revenue over two quarters.

Other technology shares fall after hours

The declines extended beyond Amazon and Intel in less-active after-hours trading. Shares of PC makers HP and Dell fell 8% and 6.8%, respectively, while chipmakers AMD and Broadcom dropped 4% and 2%.

AI cloud companies CoreWeave, Nebius and Iren fell between 5.8% and 6.7%. Alphabet, which had closed regular trading down nearly 13%, lost another 1.5% after hours.

Read More News

More FinanceVelix news

Disclaimer

This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.