Global tech stocks extended their losses on Friday as disappointing corporate earnings and mounting concerns over AI spending triggered a broad selloff across US, European and Asian markets, according to a report by the Financial Times.

Nasdaq futures fell 2% ahead of Wall Street's opening, while S&P 500 futures declined 0.9%, following a sharp retreat in technology shares on Thursday. Alphabet plunged 13%, erasing approximately $500bn in market value, as investors questioned the sustainability of its AI investment programme and the impact of AI-powered search on its advertising business.

The selloff intensified after Amazon reported weaker-than-expected sales, sending its shares down 6.6% in pre-market trading, while chipmaker Intel tumbled 26% following a disappointing outlook. Analysts highlighted growing concerns over deteriorating cash flows, rising capital expenditure and whether future AI revenues can justify the scale of investment.

Selling pressure spread across Asia, with Japan's Nikkei 225 declining 2.1% and South Korea's Kospi falling 3.5%. SoftBank dropped 6%, extending its decline from its June peak to 48%, while semiconductor manufacturers SK Hynix and Samsung Electronics lost 7.1% and 3% respectively. European chipmaking equipment supplier ASML also fell 4.9% in early trading.

The downturn reflects a broader reassessment of AI-related valuations as investors increasingly scrutinise the returns generated by substantial infrastructure spending. Of the Magnificent Seven US technology stocks, only Apple, Microsoft and Nvidia remained in positive territory for the year following Thursday's declines.

The renewed volatility presents a challenging environment for technology-focused hedge funds and systematic strategies with exposure to AI-related equities, while potentially creating opportunities for short sellers and market-neutral managers seeking to capitalise on widening performance dispersion across the sector.