Tech stocks tumbled for the second day in a row as concerns rise over the hundreds of billions of dollars firms are investing in artificial intelligence (AI).

Shares in Intel plummeted by as much as 30% on Friday, following Google owner Alphabet's stock price plunging by more than $500bn (£374bn) in the previous day's trading.

Other tech stocks including Reddit and Amazon also fell, while the Nasdaq index of the largest tech firms listed in the US, sank more than 3.5%.

While tech firms are spending big on AI, their earnings are not always meeting analysts' expectations, spooking investors and creating fears of an AI bubble.

Major tech companies have ramped up artificial intelligence spending, with Meta, Alphabet, Oracle, Amazon, and Microsoft committing to spending $800.6bn between them in 2026.

Alphabet's stock market value plunged on Thursday after it revealed the AI summaries it now provides as the top answer to search queries were affecting its core search advertising revenue.

At the same time,…