Semiconductor selloff drags Intel, Marvell and AMD after concerns about AI chip demand cooling

Semiconductor stocks slid broadly in afternoon trading as investors rotated out of the AI-chip complex and questioned whether the market’s recent assumptions about relentless demand were weakening. The Philadelphia Semiconductor Index dropped more than 7%, pulling down multiple names including Intel, Marvell Technology and Advanced Micro Devices (AMD).

In the same session, Intel shares fell about 6.8%, Marvell Technology dropped about 12.1%, and AMD declined roughly 6%. The move was framed as profit-taking after a period in which investors largely priced in continued shortages for key AI components, including graphics processing unit (GPU) capacity and high-bandwidth memory (HBM).

A specific line of concern cited in the market write-up centered on a warning from a Citi analyst about whether large cloud platforms will keep increasing AI infrastructure spending if investors cannot see that the spending is generating measurable returns. In other words, the fear was not only about near-term demand, but about whether the spend cycle could slow if performance and economics disappoint.

The selloff narrative also broadened after reports that Meta planned to sell access to some of its AI computing capacity. Investors interpreted that kind of offering as a potential sign of spare capacity, which could reduce the industry’s pricing power and future order growth for AI accelerators and memory, especially if customers can lease capacity instead of buying as much new hardware.

For the past two years, the semiconductor trade has largely depended on the idea that GPU and memory supply constraints would remain tight, with orders pushed higher by the need to build out AI data centers. The market commentary suggested that any indication of excess capability could undermine that “always in shortage” thesis, putting pressure on companies exposed to AI hardware demand.

Beyond general AI demand worries, the write-up flagged a separate pressure point for companies tied to consumer devices and supply chains. It cited reports that Apple was in talks to source chips from two Chinese suppliers, raising concerns among investors about competition and pricing dynamics, particularly in segments that overlap with handset and device silicon.

The trading move was ultimately attributed to multiple factors stacking together, including sector-level pullbacks and stock-specific reactions. Even within a broadly down tape, the commentary emphasized that investors were also reallocating after a run-up in high-expectation names.

What remains unclear is the extent to which these concerns are already reflected in company guidance or near-term orders. The market post did not provide new earnings or forecast updates from Intel, Marvell or AMD, and it did not offer fresh disclosures on how quickly AI-related demand could slow. Investors looking for confirmation would likely focus on subsequent commentary from management teams and any updates on customer spending plans.