Chip stocks rebound after worst AI selloff since 2020

Chip stocks rebounded Friday after the semiconductor group's worst sell-off since 2020, with NVIDIA, AMD, Intel, Micron and Broadcom shares climbing in morning trading.

Market moves

AMD stock was at $437.11, up 8% in morning trading from Thursday's close, following a 17% drop in Thursday's session. AMD stock remained down 33% over the past month despite the bounce.

Intel stock was at $55.09, up 5%, after a 10% slide on Thursday. Across the past month, Intel stock was down 51%, the largest drop of the five chipmakers covered.

NVIDIA stock was at $189.80, up 5%, after a 9% decline on Thursday. Over one month, NVIDIA stock was down 21%.

Micron stock was at $709.50, up 8%, matching AMD's gain. Over one month, Micron stock was down 32%.

Broadcom shares were at $307.65, up 6%. On a one-month basis, Broadcom stock was down 18%, the smallest drawdown of the five chipmakers.

What drove the selloff

The PHLX Semiconductor Index plunged 12% on November 5, its worst sell-off since 2020. Investors sold off artificial intelligence (AI) stocks on concerns that Democratic policymakers could block U.S. data center projects after the Democrats' midterm win. Growing local opposition to data center construction added to the pressure on AI chipmakers such as AMD.

Selling spread well beyond U.S. chipmakers. The NASDAQ 100 had its worst day since April 2025 as NVIDIA's slide weighed on the index. South Korea's Kospi fell more than 6%, its worst day since 2025, as the rout reached Asia.

AMD fundamentals and outlook

AMD disclosed on November 3 that its Q3 2026 revenue rose 44.7% year over year to $13.38 billion, with its Data Center segment up 97%. On the earnings call, CEO Lisa Su noted, "We do have more demand than we have supply."

However, the policy worry behind the sharp drop had not been resolved. AMD's planning assumption calls for personal computer (PC) market unit shipments to decline by a double-digit percentage in 2027, a drag outside its AI business.

Why it matters

The rebound may reflect seller exhaustion after a violent selloff, but traders and analysts said it remains unclear whether the bounce marks a durable recovery. Fresh policy headlines on data center projects could revive fears and cause the rally to fade. NVIDIA's upcoming earnings report stands as a checkpoint for the AI chip trade.

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Sources

• moomoo.com: Nvidia, AMD and Other Chip Stocks Rebound. Is the 'Violent' AI Selloff Over?
• finance.yahoo.com: AMD Jumps 8%, Intel and NVIDIA Climb 5% as Chip Stocks Rebound From Worst Sell-Off Since 2020
• 247wallst.com: AMD Jumps 8%, Intel and NVIDIA Climb 5% as Chip Stocks Rebound From Worst Sell-Off Since 2020 - 24/7 Wall St.
• tradersunion.com: Nasdaq futures rebound as chip stocks stabilize after AI-led selloff

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.