Chip stocks are leading a sharp midday pullback Tuesday, with Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) down 9% and Intel (NASDAQ:INTC) sliding 8%. AMD shares are trading near $446, while Intel stock is hovering around $101.50.
The selling is broad-based. The Invesco QQQ Trust (NASDAQ:QQQ), which tracks the NASDAQ 100, is off 3% on the day as semiconductor weakness ripples through other AI-hardware and custom-silicon names. It’s a broad risk-off move across the chip complex rather than a single-stock story.
Today’s drop follows a blistering run for both names. AMD stock was up 129% year to date heading into Tuesday, and Intel stock was up 199% over the same stretch. That kind of vertical advance often invites rapid intraday reversals.
Profit-Taking Hits the Chip Trade
There’s no single confirmed catalyst behind the chip selloff. Today’s news flow on AMD has actually skewed positive, including a Mizuho price target raise to $615 from $515 with an Outperform rating, citing AI infrastructure demand expected to stay supply-constrained through 2027.
The fundamental backdrop also remains constructive. AMD reported Q1 FY2026 revenue of $10.25 billion, up 38% year over year, with the Data Center segment delivering $5.78 billion, up 57%. Intel posted Q1 revenue of $13.58 billion and Data Center and AI revenue up 22%.
AMD’s leadership has pointed to AI infrastructure demand, the MI450 Series and Helios pipeline, and major hyperscaler partnerships as drivers of forward growth. Intel’s leadership has highlighted AI inference and agentic workloads, the Intel 18A process node, and selection as a host CPU partner for next-generation AI server platforms.
The likelier read on today’s tape is profit-taking and rotation out of high-momentum AI and chip names like AMD and Intel after enormous gains. Positions that size tend to unwind quickly on any uptick in market anxiety, especially when no incremental catalyst is in view. The VIX closed Monday at 18.92, up 18% over the past week, consistent with rising hedging activity.
Semiconductors Drag the NASDAQ 100
Because AMD and Intel carry meaningful weight in the NASDAQ 100, their declines are amplified at the index level. The semiconductor group has been the standout sector of the year, with the iShares Semiconductor ETF (NASDAQ:SOXX) up 89% year to date heading into Tuesday, fueled by AI infrastructure and data-center buildouts.
That concentration cuts both ways. When chip stocks rally together, they pull the NASDAQ 100 higher, as they have for much of the year. When they sell off in tandem, as AMD and Intel are doing today, the index gets dragged lower in a hurry.
The pullback shows how dependent the NASDAQ 100 has become on a narrow band of AI and chip leadership. With semiconductors driving such a large share of this year’s index gains, a single-day shakeout in names like AMD and Intel can erase weeks of accumulated NASDAQ 100 progress.
The valuation chatter may be adding fuel. AMD stock trades at a P/E ratio of 175x, and one valuation model flagged Intel stock as 291% overvalued versus an intrinsic estimate. Whether or not investors give those views weight, they fit the narrative for a momentum unwind across the high-flying chip cohort.
What to Watch
A key question for AMD and Intel shareholders is whether dip-buyers step in before the close or whether selling accelerates into the bell. Heavy-volume reversal days often set the tone for the rest of the week in the chip group, so the afternoon tape matters.
Investors may want to size their positions carefully here, since high-flying semis can move violently in both directions. Watch for whether the NASDAQ 100 stabilizes alongside AMD and Intel, or whether the rotation out of chip leadership has more room to run.
The longer-term setup for AMD stock and Intel stock still leans on AI infrastructure demand, hyperscaler partnerships, and capacity ramps at advanced nodes. Today’s drawdown is intraday in nature, and markets can shift through the session. The close could end up revealing a lot more than the midday print.
Top Gaining Stocks
Top Losing Stocks