AMD drops about 9% and Intel slips about 8% as chip selloff drags the Nasdaq 100 lower

U.S. chip stocks led a sharp midday pullback Tuesday, dragging the Nasdaq 100 lower. Advanced Micro Devices shares were reported down about 9%, while Intel was off roughly 8%, extending weakness across what investors treat as the AI and custom-compute supply chain. The Invesco QQQ Trust, which tracks the Nasdaq 100, was reported down about 3% on the day, indicating that the move was not isolated to a single ticker.

The selling was described as broad-based across the semiconductor complex, including other AI-hardware and custom-silicon names. In that framing, the tape looked more like rotation out of high-momentum growth trades than a reaction to a single company-specific shock, though the reporting did not identify one definitive catalyst behind the decline.

One factor cited for the timing was the size of the recent run-up in both names. AMD was reported up about 129% year to date heading into Tuesday, while Intel was up about 199% over the same stretch. Moves of that magnitude can increase sensitivity to intraday profit-taking, particularly when sentiment has been strong for several sessions.

The article also noted there was no single confirmed headline driving the selloff. It pointed out that near-term news flow on AMD had skewed positive, including a Wall Street price target increase by Mizuho, which cited expectations for AI infrastructure demand to remain supply-constrained through 2027. Still, investors appeared willing to sell despite constructive commentary, consistent with a “take profits, reprice risk” move rather than a deterioration in the fundamental outlook.

Fundamental comparisons were used to reinforce that both companies have recently posted solid operating performance. AMD’s reported Q1 FY2026 revenue was $10.25 billion, up 38% year over year, with its Data Center segment at $5.78 billion, up 57%. Intel’s reported Q1 revenue was $13.58 billion, with Data Center and AI revenue up 22%. Those figures were presented as part of a backdrop that remained supportive even as the share prices pulled back.

Still, the market-news framing left room for uncertainty. The reporting acknowledged that it was not clear what, if anything, had changed for investors in the moment, and it suggested the likelier read was profit-taking and rotation out of high-momentum AI and chip names after large gains. It did not provide additional details about order flow, derivatives positioning, or sector-wide guidance changes that could explain the magnitude of the intraday drawdown.

For investors and traders watching the sector, the practical takeaway was that semiconductor weakness can be synchronized when broad risk appetite shifts, even if the companies’ recent fundamentals remain constructive. The next indicates to watch are whether the selloff narrows back to a few names or broadens further, and whether any new company-specific disclosures emerge that could distinguish temporary profit-taking from an actual change in expectations.