Chip stocks took another hit after Intel reported a weak quarter on Thursday, blaming “near-term headwinds across the PC industry” and sending its shares tumbling about 18% in after-hours trading.
Intel also disclosed that an explosion at a factory in Israel will cost it roughly $600 million in lost revenue over two quarters, with the plant shut down for about two weeks.
The numbers landed badly with investors already rattled by Alphabet’s results a day earlier, which showed the Google parent burning cash at a record pace on AI spending. In extended trading, AMD fell 4% and Broadcom 2%, while Japan’s Nikkei dropped as much as 3% on Friday as chip-equipment makers Advantest and Tokyo Electron fell 9.1% and 5.6%.
The semiconductor index has been one of 2026’s standout performers, rising more than 60% as shortages of AI chips and equipment pushed up prices. But it has fallen 13% from its recent October high, and sits 21% below its all-time high in June, as tightening financing terms test the AI trade.
Analysts cautioned that Intel’s troubles are largely its own: its weakness is in PCs, not the AI data-centre hardware driving the boom. “Intel does not have much to do with AI, which is why the market might ignore it,” one strategist told Reuters — but on current sentiment, the market is in no mood to make exceptions.
Sources: Reuters — “Weak quarter for Intel sends shivers through cooling chip stocks” (29–30 Oct 2026); Reuters — “Japan’s Nikkei slumps 3% as tech stocks tumble on AI worries” (30 Oct 2026).
