AMD, Arm and Qualcomm Shares Slide After Intel's Forecast: What Happened
AMD, Arm and Qualcomm each fell more than 12% on Friday as Intel's weak forecast and new worries about AI spending set off a broad chip selloff.
What happened
Shares of chip designers AMD (AMD), Arm Holdings (ARM), and Qualcomm (QCOM) each fell more than 12% on Friday, as of 2:51 p.m. ET, after a weak forecast from Intel (INTC) set off a selloff across the semiconductor industry. Marvell Technology (MRVL), Astera Labs (ALAB), and Credo Technology (CRDO), which make chips that move data inside AI data centers, fell by similar amounts.
Intel itself sank 31.1% as of 2:51 p.m. ET, on course for its worst day since 1974, Forbes and Benzinga reported. On Thursday evening it forecast fourth-quarter revenue of $15 billion to $16 billion, short of the $17.07 billion analysts expected according to LSEG, as we reported in our Intel recap. Tom’s Hardware and Benzinga said chip stocks lost about $1 trillion of market value in the day.
Amazon added to the pressure. It said it burned through $42.4 billion of free cash flow over the past 12 months as it spends on AI, which deepened worries about how long the AI building boom can last, Reuters (via Yahoo Finance) and the Associated Press reported. Our Amazon recap has the details.
Why it matters
The selloff wasn’t about anything these companies said. Intel’s weak forecast was largely about PCs, where high memory-chip prices are hurting sales, Tom’s Hardware reported. But investors read it, alongside Amazon’s spending, as a sign that the chip cycle may be peaking, and they sold the stocks that had run the furthest.
Several had run a long way. Before Friday, AMD was up 164.5% this year and Marvell 156.9%, while Arm was up 109.3% even after a slide from its June high.
| Stock | Price, 2:51 p.m. ET | Change | Year to date before Friday |
|---|---|---|---|
| Astera Labs | $250.39 | -13.8% | +74.6% |
| AMD | $493.98 | -12.8% | +164.5% |
| Arm Holdings | $199.78 | -12.7% | +109.3% |
| Qualcomm | $162.26 | -12.5% | +8.4% |
| Credo Technology | $144.89 | -12.3% | +14.9% |
| Marvell Technology | $191.57 | -12.3% | +156.9% |
Chip-equipment makers fell too. Applied Materials (AMAT) was down 9.2%, Lam Research (LRCX) 8.4%, and ASML (ASML) 8.0% as of 2:51 p.m. ET.
What the market is telling us
AMD’s shares moved 5% or more on 53 of the last 252 sessions. The last move at least this big in the same direction was on 22 October 2026, when the stock fell 8.1%. At Thursday’s close of $566.42 it sat 12.8% below its 52-week closing high of $649.42 from 6 October 2026, and $1,000 invested in AMD five years ago would have been worth $4,711.
We think a sector-wide drop on another company’s PC forecast is a sentiment move, not news about AMD’s or Marvell’s data-center business. AMD reports on Tuesday, and our preview lays out what it needs to show.
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Mostly Markets is for information and education only and isn't investment advice. Dev Malhotra is a pen name. Prices are from Nasdaq and CNBC as of the time stated.
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