Intel’s weak outlook triggers broad decline in semiconductor stocks, Intel plunges nearly 30%

Intel’s performance fell short of expectations and its outlook remained weak, together with Amazon’s disappointing results, reigniting market concerns regarding AI investment trades. Semiconductor stocks consequently fell across the board. The downward trend spread throughout the semiconductor industry, affecting chip equipment manufacturers, foundries, and analog chip suppliers. Broadcom’s share price dropped about 4% at the open during Friday’s regular trading session, AMD plummeted nearly 10%, and Micron Technology declined 5.5%. Intel's stock price fell close to 30% on Friday, wiping out about $120 billion in market value. Shares of foundry equipment manufacturers also declined, with Applied Materials dropping nearly 5% and Lam Research down 5.5%. This sector is particularly sensitive to chipmakers’ willingness to invest in capital expenditures—especially as chip manufacturers cut back on spending in memory and logic chips, pushing equipment makers to take the brunt. At the same time, Qualcomm’s stock followed the overall weakness in the wireless and mobile phone industry. The market is concerned about sluggish enterprise hardware demand and potential bottlenecks in smartphone demand.