European shares fall as AI spending concerns hit tech stocks

European shares dropped on Friday as a global technology selloff overshadowed an otherwise strong month. The pan-European STOXX 600 closed 0.36% lower at 646.75 points, while still recording its best month since June. Results from Amazon and Intel reignited concerns about the cost of building AI infrastructure and how quickly that spending will generate returns.

The European technology sector index fell 2.75%, its worst day since July 7. AT&S, Soitec and Technoprobe led losses on the benchmark, with declines ranging from 9% to 13%. Strong European earnings offered some support, but investors remained concerned that robust AI demand alone could not justify the scale of capital spending.

Euro zone growth exceeded expectations despite expensive energy, while rising borrowing costs and inflation clouded the outlook. French consumer prices increased more than expected in October. Corporate results provided brighter spots: Universal Music Group rose 7.89% after subscription streaming revenue growth accelerated, Puma gained 5.59% following a quarterly sales beat, and Sanofi advanced 4.71% after beating earnings expectations and raising its outlook.