$INTC dropped 18% after a factory explosion in Israel reportedly forced a two-week shutdown, with the disruption expected to cost around $600 million in lost revenue over two quarters.
The impact also weighed on other chip stocks after hours, mainly due to Intel’s outlook and the broader negative sentiment.
But Intel’s problems in the PC business don’t automatically mean trouble for the AI chip sector. The two markets have different demand drivers, so it’s worth looking at them separately.
AMD fell 4%, Broadcom lost 2%, and the 3x leveraged semiconductor ETF dropped 9%.
Semiconductor stocks have had a strong run in 2026, with the SOX index gaining more than 60% as AI demand and chip shortages helped lift prices and profits for companies like Nvidia, Micron and Marvell.
Now, investors are paying closer attention to valuations, funding costs and how much growth these companies can actually deliver.
AI demand is still a major driver for the chip sector, but not every company will benefit equally.
The impact also weighed on other chip stocks after hours, mainly due to Intel’s outlook and the broader negative sentiment.
But Intel’s problems in the PC business don’t automatically mean trouble for the AI chip sector. The two markets have different demand drivers, so it’s worth looking at them separately.
AMD fell 4%, Broadcom lost 2%, and the 3x leveraged semiconductor ETF dropped 9%.
Semiconductor stocks have had a strong run in 2026, with the SOX index gaining more than 60% as AI demand and chip shortages helped lift prices and profits for companies like Nvidia, Micron and Marvell.
Now, investors are paying closer attention to valuations, funding costs and how much growth these companies can actually deliver.
AI demand is still a major driver for the chip sector, but not every company will benefit equally.