A deepening sell-off in semiconductor and memory stocks is amplifying pressure on Advanced Micro Devices (AMD) as it prepares to report third-quarter earnings, with investors on edge after Intel suffered its worst month in at least 46 years.
Intel closed at $59.97 on Nov. 2, down 8.80%, adding to the nearly 29% plunge on Oct. 30 that marked its worst single day since 1974. October was Intel's worst month since at least 1980, with a 45% loss, and its market capitalization has now fallen to about $317 billion. For the fourth quarter, Intel guided adjusted EPS to just $0.25, less than half the $0.52 it earned in Q3. CFO David Zinsner said the PC slowdown is expected to last "at least through the first half of next year," although the company's data center and AI segment grew revenue 78% year over year in Q3.
The damage has spread across the chip complex. Micron, Sandisk, Seagate and Western Digital fell roughly 6% to 8% in a single session, while Marvell dropped more sharply after agreeing to buy Lumentum in a $115 billion deal. Nvidia has held up better than most but is still down about 16% since Oct. 6. Overall, chip and memory stocks have lost about $3.7 trillion in market value since Oct. 6, with Nvidia losing roughly $896 billion, TSMC $435 billion and AMD $298 billion.
AMD stock fell 11% ahead of its $13.1 billion quarterly earnings test, with analysts saying AI chip demand and forward guidance could determine whether the stock stabilizes. The report lands Tuesday after the bell, the same day as the midterm vote. Some market observers see potential for a rebound, noting that chips have risen in all eight midterm cycles since 1994 measured from the last October close through the following June. Adam Johnson of the Bullseye Brief said "The market kitchen-sinked it," while former Cisco CEO John Chambers warned there will be "major train wrecks," adding he "would not bet against Nvidia."
For crypto markets, the semiconductor rout is a risk-sentiment signal rather than a direct fundamental catalyst, but broad weakness in technology and growth equities could weigh on appetite for high-beta assets.
