Semiconductor stocks led a broad risk-asset pullback on Tuesday as the 30-year U.S. Treasury yield climbed to its highest level since June 2007 and oil prices remained elevated above $85 a barrel. Intel shares dropped nearly 5% in premarket trading to $98.69, while Nvidia fell about 3%, and peers including Western Digital, Sandisk, Marvell and Seagate lost more than 6%.
The decline came one day after the PHLX Semiconductor Index entered a new bull market, having surged 21% from its July 29 low in just 21 days, the fastest such recovery since March 2020. That momentum reversed as investors pulled back from higher-risk names ahead of the open, with Nasdaq futures down 1.24% and S&P 500 futures off 0.41%.
Analysts remained constructive on individual names despite the macro pressure. Bank of America reiterated its Buy rating on Nvidia with a $350 price target, citing solid GPU rental rates and Nvidia’s $105 billion in commitments related to OpenAI. For Intel, BofA maintained a Buy rating but lowered its price target to $145 from $160, projecting Intel Foundry revenue could rise from roughly $1.1 billion in 2026 to nearly $40 billion by 2030.
Technical indicators for Intel showed longer-term strength but near-term softness, with the stock trading 40.2% above its 200-day simple moving average, yet 9.6% below its 50-day average. Nvidia is scheduled to report its fiscal 2027 second-quarter results on August 26, and BofA expects more disclosure around off-balance-sheet commitments at that time.
