Arm stock tumbles 11.8% as Intel's weak outlook sparks semiconductor selloff

Arm Holdings ADR stock fell nearly 11.8% in mid-day trading after Intel’s weak fourth-quarter outlook triggered a broad semiconductor sector selloff. Intel forecast Q4 2026 revenue of $15-$16 billion, below the expected $17 billion, and projected EPS of $0.25 versus a $0.43 consensus. The decline hit sector peers including AMD, Qualcomm, Broadcom, and Marvell, reflecting industry-wide contagion rather than Arm-specific issues. Arm’s CFO recently sold shares under a routine trading plan, and a Qualcomm royalty dispute remains unresolved, adding to negative sentiment. The broader market offered no support, with the NASDAQ down 3.1% and the S&P 500 off 1.9%. Arm had been trading below key moving averages with an elevated valuation ahead of its November 4 earnings release, amplifying the selloff.