Chip Stocks Crater: Intel Falls 6%, AMD Drops 5% Thursday
Semiconductor names got hammered Thursday despite bullish analyst calls. Intel led the selloff even with HSBC flagging 60% upside.
Chip stocks are getting crushed Thursday and the pain is broad. Intel dropped 6% to $119.83 at midday, AMD shed 5% to $511.67, and the iShares Semiconductor ETF (SOXX) tanked 6% to $561.49. This isn't a single-stock story — the whole sector is bleeding.
Here's what makes this selloff sting extra: the backdrop heading into Thursday was actually decent for chips. Intel had fresh bullish coverage from HSBC, which sees 60% upside from current levels. Analyst upgrades don't get much more optimistic than that. And yet the stock still cratered. When good news can't hold a stock up, that tells you something about where the real pressure is coming from.
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The SOXX ETF is your canary here. A 6% single-day drop in a diversified semiconductor fund means this isn't about one bad earnings report or one negative headline. Macro forces, rate anxiety, or position unwinding are the more likely culprits when the whole group moves in lockstep like this.
For active traders, days like this are a gut check. Intel sitting 60% below HSBC's target while simultaneously falling 6% in a session is the kind of dislocation that either sets up a bounce trade or signals deeper trouble ahead. You have to decide which story you believe — the analyst's long-term thesis or the market's immediate vote with real money.
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