Nasdaq Sinks as AI Stocks Slide on October 22: Meta, Nvidia and the Cost of Growth

Wall Street's technology-heavy benchmarks were under severe pressure Thursday, October 22, 2026. Reuters described a decline of more than 2% in the Nasdaq during the US session as investors reconsidered the price and financing of artificial-intelligence infrastructure. This is a dated intraday report, not the official closing return. The preceding completed US session, Wednesday October 21, had produced an S&P 500 close of 7,757.17 and a Nasdaq Composite close of 26,702.86, according to Associated Press.

The central debate is no longer whether demand for AI computing exists. Investors are questioning how efficiently cloud operators and model developers can convert rapidly rising capital expenditure into sustainable free cash flow. Borrowing costs, expensive accelerators, power infrastructure and depreciation mean revenue growth does not necessarily translate into attractive equity returns. A company may deliver strong sales and still disappoint shareholders if expected spending rises faster than future cash generation.

Meta's third-quarter results illustrate the split. AP reported revenue of $64.60 billion, up 26% year on year, and net income of $9.86 billion. Its 2026 capital-expenditure plan of $135 billion to $145 billion drew attention alongside its proposed share structure for AI investment. Reuters reported a fall in Meta shares during Thursday's session. The operating figures describe the reported quarter; the share move reflects the market's evolving assessment and should not be conflated with a completed day-end price.

Reuters also described deep selling in semiconductor-linked stocks, while some defensive and nontechnology businesses performed better. That distinction helps explain why the Dow and Nasdaq can show very different percentage changes on the same day. The Nasdaq Composite is not identical to Nasdaq-100 futures or a CFD symbol: compare like with like when quoting a daily move.

Before treating the selloff as a trend change, compare the next completed Nasdaq and S&P 500 closes, semiconductor breadth, bond yields and management guidance on infrastructure spending. Ask whether forward earnings estimates have actually changed, whether orders are recurring, and how much future profitability is already priced into valuation multiples. Friday's US consumer-sentiment release may influence expectations for inflation and interest rates.

RecoupRev does not treat this snapshot as a real-time quote or investment signal. See the latest linked price charts and the updated markets desk for subsequent developments. This report covers publicly reported information and does not predict where any stock will trade next.