Intel and Advanced Micro Devices shares fell sharply on Thursday as a broader technology selloff weighed on semiconductor stocks.
Intel declined around 7%, while AMD plunged 14%.
The Dow Jones Industrial Average fell nearly 3%, the S&P 500 lost 3.7%, and the Nasdaq Composite dropped 4.95%.
The declines came amid continued pressure on AI-related stocks following the US midterm elections.
Investors are reassessing the outlook for semiconductor companies amid concerns about data centre spending, memory costs and the sustainability of AI-related growth.
Intel faces prolonged pressure after earnings
Intel shares fell for another session, putting the stock on course to lose more than half its value in a month.
Much of the decline followed its late-October earnings report, when the stock plunged 29% in a single day.
The company’s weak outlook, supply setbacks and softness in its PC business contributed to the selloff.
Intel shares have struggled to recover, falling a further 11% over the three full trading sessions following the earnings-related drop.
The US government’s investment in Intel has also lost value.
Washington acquired a 9.9% stake in the chipmaker in August 2025.
The holding, valued at around $50 billion on October 5, is now worth approximately $24 billion, although it remains above the government’s initial $8.9 billion investment.
Intel CEO Lip-Bu Tan purchased $9.7 million worth of shares through his family trust on Monday, according to an SEC filing.
However, the stock has since fallen more than 12% below the price he paid.
More than 60% of analysts covering Intel rate the stock a Hold, according to FactSet data.
Morningstar sees upside but flags AMD’s risks
Morningstar raised its fair value estimate for AMD to $570 a share from $530, while maintaining a fairly valued rating.
The research firm continues to rate Nvidia and Intel as undervalued, with fair value estimates of $570 and $85, respectively.
These estimates imply potential upside of around 18% for AMD, 50% for Nvidia and 40% for Intel.
Morningstar analyst Brian Colello said AMD would need to strengthen its software capabilities to challenge Nvidia’s AI position.
He noted that Nvidia benefits from both its graphics processing units and its associated AI software tools.
However, Morningstar remains optimistic about AMD’s longer-term opportunity.
The firm expects its server CPU revenue to grow by more than 100% in 2027, compared with its previous forecast of more than 70%.
It also projects AMD’s overall revenue to grow at a compound annual rate of 44% between 2026 and 2030. Its forecast assumes a temporary pause in demand before growth resumes.
Memory costs and market volatility add to uncertainty
Morningstar warned that rising memory prices could weigh on AMD’s PC business in 2027 by affecting production and consumer demand.
The firm cited Apple CEO John Ternus’ description of current memory pricing as “unprecedented”.
Colello said AMD’s lower client PC forecast was consistent with Intel’s recent comments about the market.
AMD may be less exposed than Intel because it has a smaller PC business and greater exposure to premium computers, which could be less sensitive to higher memory costs.
Market views on the broader semiconductor selloff remain divided.
Wedbush analyst Dan Ives told Bloomberg that chip stocks could fall another 10% to 12%, describing the current period as a “gut check” for technology investors.
Fundstrat’s Tom Lee, by contrast, called the pressure on AI-related stocks an “overreaction”.
Speaking to CNBC, he said technology stocks could rally 20% from current levels if hedge funds return to the sector before year-end.
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