Intel, AMD, Nvidia Stocks Fall in Premarket as Chip Sector Reverses Gains

Semiconductor stocks fell in premarket trading on Wednesday, reversing gains from the previous two sessions. Intel stock led declines with a 2.7% drop, while Advanced Micro Devices and Nvidia stocks fell 1.8% and 0.9%, respectively. Memory chipmakers Micron and SanDisk declined 1.8% and 2.3%, respectively, while the iShares Semiconductor ETF (SOXX) dropped 2%. The pullback came as tech earnings season begins with Alphabet's quarterly report later today and Intel's results scheduled for Thursday. The SOXX ETF had surged 5.5% on Tuesday, its largest one-day gain in over a month, after rising 0.4% on Monday.

SOXX ETF Reverses 5.5% Tuesday Gain

The iShares Semiconductor ETF (SOXX) fell 2% in premarket trading, reversing Tuesday's 5.5% surge. The fund had edged up 0.4% on Monday. Since the start of July, investors have booked profits and rotated funds into Big Tech and software names.

On Stocktwits, retail sentiment for INTC and MU shifted to 'neutral' from 'bullish,' while sentiment for AMD and SOXX remained 'neutral.'

Moonshot AI Released Kimi K3 Open-Source Model Last Week

Last week, China's Moonshot AI released Kimi K3, an open-source model that its maker claims matches leading closed U.S. models despite being developed with far fewer financial and computing resources. Chip stocks had been under pressure lately from low-cost Chinese AI models.

Intel Reports Q2 Earnings Thursday With $14.45B Revenue Expected

Intel's second-quarter results are scheduled for post-market hours on Thursday. Analysts expect the government-backed chipmaker's second-quarter revenue to rise 12% to $14.45 billion and adjusted income of $0.22 per share compared to a loss of $0.10 per share last year, according to data from Koyfin.

Currently, 13 out of 48 analysts rate the stock 'Buy' or higher, 32 rate it 'Hold,' and three rate it 'Sell' or lower, per Koyfin. Their average price target of $107.15 implies a mere 1.6% from the stock's last close.

FAQ

What caused chip stocks to fall on Wednesday?

Chip stocks fell in premarket trading on Wednesday, reversing gains from the previous two sessions. The iShares Semiconductor ETF (SOXX) dropped 2% after surging 5.5% on Tuesday. Since the start of July, investors have rotated funds into Big Tech and software names.

What are analysts expecting from Intel's Q2 earnings on Thursday?

Analysts expect Intel's second-quarter revenue to rise 12% to $14.45 billion and adjusted income of $0.22 per share compared to a loss of $0.10 per share last year, according to Koyfin data. Currently, 13 out of 48 analysts rate the stock 'Buy' or higher, 32 rate it 'Hold,' and three rate it 'Sell' or lower.