Friday, October 23 · thedime.news/issues/2026-10-23/

Tech stocks slid on AI spending worries, and phones cost more

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U.S. stocks fell on Thursday, led by tech. The Nasdaq dropped 2.6%, its biggest one-day fall since early June, and the S&P 500 lost 1.2%. The Dow barely moved. Reuters reported that Meta's stock fell about 7% after its report showed its spending on artificial intelligence (AI) pushed its free cash flow negative. Chip stocks fell too, including Nvidia, down about 4%. Investors worried that AI costs are getting too big. Today at 9:45am ET, S&P Global releases its flash PMI, a survey of how busy U.S. businesses are.

Why should a teenager care? AI companies are buying huge amounts of memory chips, the parts that store data in phones and computers. Reports tie that demand to Samsung raising U.S. prices on its Galaxy S26 phones by $100 on most models on October 1. The base S26 now starts at $999.99. Samsung hasn't explained the U.S. increase itself, but this is how a company's spending can reach your wallet.

Your money: Cost per month beats the price tag

A big price tag is easier to understand when you spread it over time. The cost per month of something is its price divided by the number of months you use it. It turns "$900" into a number you can compare with a $15 subscription or a paycheck.

Take a $900 phone. If you replace it after 24 months, it costs $37.50 a month. If you keep it 36 months, it costs $25 a month. Same phone, same price, but a third year of use cuts the monthly cost. Samsung's $100 price hike works out to about $4.17 a month over two years.

Longer use isn't always better. A cracked screen or a dead battery has a cost too. But before you upgrade, ask what your current phone costs per month and what the new one would. A good case can be cheaper than a new phone.

Words to know

Write what each word means in your own words.

1. Cost per month
2. Memory chip
3. Guidance

Questions

The story

1. In one sentence, what happened in the top story?
2. If AI companies make chips more expensive, who ends up paying for it?

Do the math

3. You keep a $900 phone for 3 years instead of 2. How much less does it cost per month? Show your work.

Your turn

4. A $480 phone lasts 2 years. A $540 phone lasts 3 years. Which costs less per month, and by how much?

Quiz

5. Phone A costs $600 and lasts 24 months. Phone B costs $720 and lasts 36 months. Which costs less per month? Circle one.
   1. Phone A, $25 a month
   2. Phone B, $20 a month
   3. They cost the same
   4. You can't tell without the brand

What do you think?

6. Would you rather buy a cheaper phone every two years or pay more for one that lasts four? What would make you switch? Answer in two or three sentences, and give a reason.