Intel Plunge Leads Chip Selloff as Nvidia Falls Below $5 Trillion

Intel’s 30% drop led a broad chip-stock selloff Friday, pushing Nvidia’s market value below $5 trillion and adding pressure to U.S. equities as investors questioned the payoff from AI spending.

Intel fell 30% after the open. The Philadelphia Semiconductor Index dropped 5.7%, while AMD slid about 10%, Arm fell 9.5% and Nvidia lost 3.3%. The Nasdaq 100 fell as much as 3%, and the S&P 500 was down about 1.25% during the session.

Intel projected fourth-quarter revenue of $15 billion to $16 billion and adjusted earnings of 25 cents per share. Both forecasts came in below expectations of $17.07 billion in revenue and 43 cents per share.

The company’s third-quarter PC chip revenue declined 5% from a year earlier to $8.1 billion. Intel expects weakness in the PC market to last through at least the first half of 2027. AI-related memory demand has also raised costs for PC makers.

The selloff came as Amazon’s weaker-than-expected revenue and earnings added to concerns about returns on AI spending. Energy and health care shares rose, with their S&P 500 sector indexes gaining about 1.8% and 1.4%, respectively.