Intel Drops 6%, AMD Falls 5% as Chip Stocks Sell Off
Semiconductor shares tumbled Thursday despite bullish analyst coverage, with Intel and AMD leading broad sector losses.
Chip stocks took a significant hit Thursday, with Intel falling 6% to $119.83 at midday and Advanced Micro Devices sliding 5% to $511.67, even as Wall Street analysts maintained optimistic outlooks on the sector. The iShares Semiconductor ETF mirrored the carnage, dropping 6% to $561.49 and signaling broad-based selling pressure across the industry.
What makes the selloff striking is its timing. The news backdrop heading into Thursday had actually been constructive for Intel, with HSBC projecting roughly 60% upside potential for the chipmaker's shares — a bullish call that would normally provide a floor for investor sentiment. Instead, the market moved decisively in the opposite direction.
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The divergence between analyst optimism and market action underscores a recurring theme in semiconductor trading: even strong fundamental narratives can be overwhelmed by macro-driven or momentum-driven selling. When sector ETFs like SOXX shed 6% in a single session, it suggests traders are rotating out of the space regardless of company-specific developments.
For Intel in particular, the disconnect is notable. A 60% upside target from a major bank like HSBC represents a meaningful vote of confidence in the company's turnaround prospects, yet the stock shed significant ground in a single session. AMD, which has been one of the stronger performers in the chip space over recent years, was not spared either, reinforcing the idea that Thursday's move was sector-wide rather than stock-specific.
Investors will be watching whether this pullback represents a temporary shakeout or the start of a broader cooling period for semiconductors, a group that has attracted enormous capital inflows tied to artificial intelligence infrastructure spending. Continue reading at Yahoo.
