Shares of Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) and Intel (NASDAQ:INTC) are leading a sharp midday slide in chip stocks on Tuesday. AMD stock down 5% to $523 while Intel shares are down 5% to $134 amid a broad semiconductor selloff that’s pulling the entire group lower.
Meanwhile, NVIDIA (NASDAQ:NVDA) stock is down 3% to $202. The selling is broad-based, with many chip names sharply in the red and the tech-heavy NASDAQ 100 off by 1.4%. Yet, two prominent voices on the Street are framing the rout as overdue, not alarming.
Korean Tech Implosion Triggers the Slide
The catalyst traces back to South Korea. SK Hynix overtook Samsung Electronics as South Korea’s most valuable listed company, and the benchmark KOSPI index hit a record high before retreating 10% the following day.
That unwind matters for U.S. chipmakers because of intertwined supply chains. AMD relies on Samsung as a memory partner, NVIDIA leans on Korean high-bandwidth memory suppliers, and Intel’s data-center roadmap intersects with global memory pricing. When Korea sneezes, the AI infrastructure trade catches a cold.
The pullback also stands out given how far these names have run. AMD stock was up 158% year to date (YTD) through Monday’s close, Intel shares were higher by 282% YTD, and NVIDIA stock had added 12% YTD after a parabolic 2025. With moves like that, a single-session reset barely dents the longer-term trend.
Bulls Call It a “Healthy” Washout
Wedbush’s Dan Ives, Global Head of Tech Research, dismissed the panic in a post on X. He acknowledged that the South Korean tech selloff could create near-term pressure for U.S. tech shares, but stayed firmly bullish on the AI trade, framing the weakness as profit-taking and market dynamics rather than deteriorating fundamentals.
Morgan Stanley Investment Management’s Andrew Slimmon went further on CNBC, calling the move overdue. He stated that the AI beneficiaries are “crowded” and have “captured the zeitgeist of the momentum traders,” so sharp selloffs are to be expected.
His core line: “I’d argue it’s healthy, it’s good for the markets.” Slimmon added that selloffs like these are needed to “wash out the speculators” who buy simply because prices are rising.
The fundamental backdrop still supports the bullish thesis. AMD reported Q1 2026 revenue of $10.25 billion, up 38% year over year (YoY), with Data Center sales up 57% YoY. NVIDIA followed with Q1 FY2027 revenue of $81.6 billion, up 85% YoY, per the company’s latest 8-K filing.
What to Watch From Here
The bear case still deserves a hearing. A sharp, Korea-led global selloff combined with stretched positioning in U.S. AI names is a real risk, and “healthy” is one interpretation, not a confirmation the selling has run its course. Polymarket participants assign a 99% probability that NVIDIA stock closes lower today, with only 49% odds that it finishes June above $200.
Retail chatter mirrors the stress. The viral r/WallStreetBets thread “I’ve made loss in every AI stock!” peaked above 3,300 upvotes over the weekend, capturing the pain accompanying this leg lower. Sentiment on NVIDIA has since drifted back toward neutral, per the same dataset.
Investors can watch for whether the chip group stabilizes into the close, whether Korean indices steady overnight, and whether any sell-side notes echo the Ives and Slimmon “healthy pullback” framing tomorrow. With valuations rich and positioning crowded, the next several sessions could clarify whether this is a buyable dip or the start of a deeper rotation out of AI infrastructure. Either way, investors should consider keeping their position sizes modest until the tape settles.
Top Gaining Stocks
Top Losing Stocks