Chip Stocks Crater: Intel Drops 6% Despite HSBC's Bullish Call
Intel, AMD, and the SOXX ETF all tumbled hard Thursday even as analyst upside calls failed to stop the bleeding.
Chip stocks got crushed Thursday and the bulls had nowhere to hide. Intel fell 6% to $119.83 at midday, AMD shed 5% to $511.67, and the iShares Semiconductor ETF SOXX dropped 6% to $561.49. That's a broad-based selloff, not a single-stock story.
Here's what makes this move sting: the news backdrop heading into Thursday was actually decent for the sector. Intel had just picked up fresh analyst coverage from HSBC, which sees roughly 60% upside in the stock. When a bullish catalyst that size can't hold a floor, the tape is telling you something — sellers are in control.
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For traders, the AMD move is equally telling. AMD didn't have a specific negative catalyst, yet it dropped nearly as hard as Intel. That's sector rotation or macro-driven de-risking at work, not stock-picking. When the whole cohort moves together like this, you're fighting the tide if you're trying to bottom-fish individual names.
SOXX breaking down 6% in a single session puts the ETF in focus as a key technical level to watch. Semiconductor ETFs like SOXX often act as a leading indicator for broader tech sentiment, so a sustained move lower here could ripple into the wider Nasdaq complex. Keep your position sizes honest until the sector finds its footing.
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