Intel and AMD shares slide as analysts weigh chip outlook after tech selloff

Intel and AMD shares fell sharply Thursday as a broad technology selloff pressured chip stocks, with Intel dropping about 7% and AMD losing 14%. The Nasdaq Composite slid 4.95%, while the Dow and S&P 500 fell nearly 3% and 3.7%, respectively. The declines follow post-election pressure on AI-related stocks, with investors reassessing chip outlooks due to concerns over data center spending, memory costs, and AI growth sustainability. Intel shares have lost over half their value in a month, including a 29% plunge after its late-October earnings report. Morningstar raised AMD's fair value estimate to $570 per share, citing expected server CPU revenue growth of over 100% by 2027, but warned of "unprecedented" memory costs. Analysts remain divided, with Wedbush's Dan Ives seeing further downside and Fundstrat's Tom Lee calling the selloff an overreaction.