Amazon and Intel shares fell in premarket trading Friday as investors assessed Amazon’s free-cash-flow outflow and Intel’s fourth-quarter revenue forecast, with losses extending to other chipmakers.
Reuters reported that at 4:46 a.m. ET (08:46 UTC), Amazon was down 7.2% and Intel 25%. Nvidia was down 2.5%, AMD fell 7% and Broadcom was lower by about 4% in the same snapshot. At 4:04 a.m. ET (08:04 UTC), Reuters also reported Nasdaq-100 futures down 2.16%.
Amazon purchased $77.3 billion in property and equipment in the three months ended Sept. 30, compared with $35.1 billion in the same period a year earlier. The company expects cash capital expenditures of about $220 billion for 2026 and said increased equipment purchases, reflecting AI investment, were the primary reason for its lower free cash flow.
For the 12 months ended Sept. 30, Amazon’s free cash flow was an outflow of $42.4 billion, against an inflow of $14.8 billion for the prior-year period. The measure covers a full year, not only the latest quarter. AWS net sales rose 39.3% year over year to $46 billion in the third quarter.
Intel reported third-quarter revenue of $16.5 billion, up 21% from a year earlier, and $5.1 billion in cash from operations. Revenue from its Client Computing and Physical AI Group fell 5% to $8.1 billion.
Intel CFO David Zinsner said the PC slowdown was expected to continue “at least through the first half of next year.” Intel’s fourth-quarter forecast calls for revenue of $15 billion to $16 billion and diluted earnings per share of 10 cents on a GAAP basis or 25 cents on a non-GAAP basis.
Amazon forecast fourth-quarter net sales of $240 billion to $247 billion and operating income of $28.5 billion to $33.5 billion. Those forecasts, alongside Intel’s revenue and earnings guidance, are the companies’ next operating benchmarks.
