Intel and AMD shares plunge as tech selloff deepens; analysts split on outlook

Intel and AMD shares fell sharply on Thursday, with Intel down about 7% and AMD down 14%, as a broad tech selloff hit semiconductor stocks. The Nasdaq Composite dropped 4.95%, while the S&P 500 fell 3.7% and the Dow lost nearly 3%. The declines follow continued pressure on AI-related stocks after the U.S. midterm election, with investors reassessing semiconductor prospects amid concerns over data center spending, memory costs, and the sustainability of AI-driven growth. Intel's stock has lost more than half its value in a month, largely after a 29% single-day drop following its late-October earnings report, which cited weak guidance and supply issues. Morningstar raised its fair value estimate for AMD to $570 per share, forecasting server CPU revenue growth above 100% in 2027, but warned that unprecedented memory prices could weigh on AMD's PC business. Analysts remain divided on the sector's outlook, with Wedbush's Dan Ives predicting further declines of 10-12%, while Fundstrat's Tom Lee called the selloff an overreaction.