Tech stocks fell sharply for a second day Friday as investors worried that huge spending on artificial intelligence will not pay off, CBS News, BBC News and AP report.

The Nasdaq composite fell more than 3% by midday, CBS News and BBC News report. AP says the index was heading toward its worst day since June. The S&P 500 was down nearly 2%, CBS News and AP report.

Intel shares dropped about 30% after the chipmaker gave a weaker-than-expected forecast, the outlets report. AP says the stock was flirting with its worst day since 1974. Intel's finance chief, David Zinsner, said the company did not expect to bring in more cash than it spent this year, BBC News reports.

Amazon fell after reporting a weaker profit than analysts expected, the outlets report. AP says Amazon burned through $42.4 billion in cash over the past 12 months. A day earlier, Alphabet's stock dropped more than 12%, its worst day on record, CBS News and AP report.

"We're moving out of the hopes and dreams phase of the AI trade and into the 'show me' phase," Joe Tigay of Equity Armor Investments said in a note, AP reports. "This has been one of the worst tech earnings seasons in memory," Adam Crisafulli of Vital Knowledge said, CBS News reports. BBC News reports that Meta, Alphabet, Oracle, Amazon and Microsoft have committed to spend $800.6 billion this year.

Reddit and Roblox shares also dropped sharply, CBS News and BBC News report. Oil giants ExxonMobil and Chevron rose after strong results, AP reports.

What we know: Tech stocks fell sharply Friday after weak results and forecasts from big tech firms.
What we don't: Where markets will close and whether the selling will spread next week.