Intel rebounds sharply as chip stocks swing back after Friday’s AI selloff

Wall Street snapped higher on Monday, June 8, 2026 after Friday’s sharp selloff in artificial-intelligence-related stocks. The S&P 500 was up about 0.8% at the open, and the Nasdaq Composite rose about 1.4% as investors rotated back toward chipmakers that had been punished over concerns that AI valuations had run ahead of underlying fundamentals.

Chip shares were among the day’s biggest drivers. In a Reuters report carried by Marketscreener, Intel shares jumped 12.3% after the Information said Alphabet’s Google placed an order to manufacture more than three million tensor processing units, or TPUs, in 2028. The report helped put a near-term floor under a sector that had been hit by fear that buyers were becoming more cautious about pricing and growth expectations.

That caution was tied to Friday’s broad decline across U.S.-listed semiconductor stocks. Reuters reported that chipmakers lost more than $1 trillion in market value on Friday, with the PHLX semiconductor index down nearly 8.5% in afternoon trading. The selloff was linked to Broadcom’s weak report earlier in the week, which raised worries that demand for its custom AI chips business was falling short of expectations.

On Monday, the rebound extended beyond Intel. Reuters said Micron Technology rose 10.5% after dropping 13.3% on Friday, which Reuters described as the largest loss in the S&P 500. In the same Monday market wrap, Marvell Technology was up about 14% as it was set to join the S&P 500 before trading on June 22. Nvidia and Broadcom also rose during the rebound as traders digested the selloff and repositioned.

Outside semiconductors, Reuters also pointed to investors looking ahead to company-specific catalysts. Apple rose about 2% ahead of its annual Worldwide Developers Conference, where investors were watching for updates tied to Siri and other AI features. Eli Lilly rose about 2.8% after trial results for retatrutide showed improvements including reduced severity of sleep apnea alongside weight loss and benefits related to knee pain.

For Intel, the market’s focus on AI hardware aligns with the company’s current product strategy. Intel sells AI accelerator hardware, including the Intel Gaudi 3 family, which is designed to speed up AI model training and inference in data centers. Intel also offers Gaudi 3 in standard server-friendly form factors, such as a PCIe card (a type of expansion-card interface used inside servers), aimed at integration into existing systems rather than requiring an entirely new approach to data-center buildouts. Separately, Intel promotes Intel Foundry Services, its “systems foundry” approach, which provides manufacturing and enabling support to customers building silicon solutions, using Intel’s manufacturing and technology ecosystem.

Still, investors had limited hard detail to price directly from the reported TPU order. Reuters and the market wrap did not lay out contract terms, who exactly will manufacture the 2028 TPUs, or whether Intel is expected to capture the order. Intel also did not disclose any immediate financial impact in the publicly available market reports used for Monday’s move, leaving the stock’s reaction more reflective of expectations than of confirmed near-term results.

What to watch next is whether the rebound holds as macro and sector-specific indicates continue. Reuters noted that a consumer price report could offer fresh guidance on inflation and monetary-policy expectations, which matter because higher interest-rate assumptions typically compress valuation multiples for high-growth technology names. With chip demand tied to AI spending cycles, any new read on capital budgets, supply constraints, or pricing power could quickly reframe how investors value Intel and its peers.