The semiconductor sector is selling off at the open on Friday, with all three major U.S.-listed chipmakers giving back a slice of their parabolic spring rallies. Intel (NASDAQ:INTC | INTC Price Prediction) shares are leading the move lower, sliding 8% in early trading to $108 from Thursday’s close of $115.93.
Advanced Micro Devices (NASDAQ:AMD) stock is down 4% to $432, while NVIDIA (NASDAQ:NVDA) shares are off 4% at $226. The coordinated decline lands after one of the steepest multi-week runs the AI chip group has produced in years.
This is the AI semiconductor complex behaving the way parabolic moves usually do. Profit-takers are locking in gains heading into the weekend, and pre-earnings positioning around NVIDIA’s May 20 report is amplifying the rotation across Intel, AMD, and NVIDIA shares.
Intel Leads the Selloff
Intel has been the runaway 2026 leader of the group, with INTC stock up 214% year to date through Thursday’s close and 82% in just the past month. That kind of vertical move usually invites a sharp consolidation, and that’s what Intel shareholders are getting today.
The rally has been powered by Apple (NASDAQ:AAPL) foundry deal speculation, an AI server demand recovery, and a blowout Q1 FY2026 earnings report from Intel. The company posted non-GAAP EPS of $0.29 against estimates near a penny, with Data Center and AI revenue up 22% year over year to $5.05 billion.
Mizuho earlier this week lifted its INTC price target to $124 on agentic AI server demand. Today’s drop is consistent with the highest-beta name in the group leading the downside, and Intel stock remains the index’s standout 2026 comeback story even after the pullback.
Advanced Micro Devices Joins the Pullback
AMD stock had more than doubled this year, with shares up 110% year to date through Thursday and 76% over the past month alone. Today’s decline in AMD shares is more measured than Intel’s, in line with the stock’s somewhat steadier ascent.
The underlying story remains strong. AMD reported Q1 FY2026 revenue of $10.25 billion, up 38% year over year, with Data Center revenue jumping 57% to $5.78 billion on EPYC and Instinct GPU strength.
Bank of America hiked its AMD price target to $500 this week, while Daiwa downgraded the stock citing valuation after the 150% 60-day rally. Reddit chatter on AMD has stayed predominantly bullish overnight, with sentiment scores in the 72 to 78 range, suggesting profit management rather than capitulation among retail holders.
NVIDIA Slides Ahead of May 20 Earnings
NVIDIA had been the relatively measured performer of the three, with NVDA stock up 26% year to date and 20% in the past month heading into Friday’s session. That comparatively restrained run hasn’t insulated NVIDIA shares from today’s group decline.
A piece of this move is mechanical pre-earnings derisking. NVIDIA reports on May 20, and Polymarket bettors are pricing in a 95% probability of a beat. A separate intraday market puts the odds of NVDA stock closing down today at 94%, with the crowd’s modal May price sitting at $240.
Analyst targets at Wells Fargo and Bank of America remain in the $315 to $320 range, with the broader Wall Street consensus on NVIDIA at $269.95. Insiders have leaned net buyers across 61 recent NVDA transactions, a fundamental counterweight to the tactical selling.
What to Watch Next
All three names remain firmly positive for the year, so today’s move reads as a pullback inside an uptrend rather than a thesis break. The structural AI infrastructure story behind Intel, AMD, and NVIDIA hasn’t changed in 48 hours, even as the price action gets choppier.
The next big catalyst is NVIDIA’s May 20 earnings report after the close, which has a habit of moving the entire complex in lockstep. Watch for whether INTC and AMD shares stabilize alongside NVDA stock into that earnings report, or whether the rotation continues as momentum traders trim exposure.
For prudent investors, the practical takeaway is that single-day moves of 4% or more in either direction aren’t unusual with this group in 2026. Position sizing matters when the AI chip complex can swing this much before lunch, and next Wednesday’s NVIDIA report will likely set the tone for Intel, AMD, and NVIDIA shares through the rest of the quarter.
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