NEW YORK, June 5, 2026, 19:03 (EDT)
- Intel traded at $99.17, off $12.76, or about 11.4%. Volume had topped 144 million shares.
- The PHLX Semiconductor Index lost 10.3% for its biggest tumble in a day since March 2020. U.S.-traded chipmakers saw around $1.3 trillion in market cap wiped out.
- Intel shares fell a day after Foxconn announced it will team up with the company on next-gen AI infrastructure.
Intel shares slumped Friday, with chip stocks broadly lower as investors sold off the sector. A new AI deal with Foxconn got little attention amid the steepest chip decline since early pandemic selling.
The stock last changed hands at $99.17, off roughly 11.4% from its prior close. Shares swung between $96.81 and $109.28 today, a big range as buyers pulled back from what had been a popular chip name this year.
Intel got swept up in the AI-driven chip rally, but doubts over how soon its rebound will stick have lingered. The selling picked up speed after Broadcom’s guidance raised alarms. The PHLX Semiconductor Index dropped 10.3%. About $1.3 trillion in U.S. chipmaker value was wiped out, according to .
Stocks dropped across the board. Wall Street fell after the May jobs report came in stronger than forecast, bringing back concerns the Fed might keep rates higher or even tighten more. Higher rates hit growth stocks, as investors discount future profits more.
Intel shares moved lower as other top AI chip stocks sold off. Nvidia gave up 6.2%, AMD fell nearly 11%, and Broadcom lost 7.9%. Broadcom’s earnings fell short of high market expectations for its custom AI chips.
Intel’s Thursday news got little attention. Foxconn, the top contract electronics maker, announced a deal with Intel to build AI data-center gear. The plan includes racks with Intel Xeon chips and AI accelerators, plus cooling, interconnect, and power-saving tech. The companies didn’t share any financial size, customer details or a launch date.
Foxconn Chairman and CEO Young Liu said the partnership would blend “computing platforms, system integration, and global supply chain capabilities.” The comment pointed to Foxconn’s longer-term plans, but it didn’t stop shares from falling on Friday. Reuters
Market strategists called it more of a positioning shakeout than a clear statement on Intel’s products. Ryan Detrick, chief market strategist at Carson Group, said “the dam just broke today” after tech and chip stocks had run up for a while. Reuters
Ohsung Kwon, chief equity strategist at Wells Fargo, said the semiconductor sector was “way overbought,” but he doesn’t see this as the chip bull market ending. Anthony Saglimbene at Ameriprise Financial said the “secular tailwinds of AI still exist,” even with some investors cashing in. Reuters
Intel’s strong rally left the stock exposed. Reuters said this week Intel and AMD each jumped over 160% since markets hit lows in March. The S&P 500 tech sector is now over 39% of the index by market cap, higher than it was during the 2000 Internet bubble.
Friday’s drop could stretch out if another strong inflation print lands, Broadcom-style AI demand fizzles, or Foxconn’s orders don’t show up. Intel is still under pressure. The foundry unit has a lot to prove—it needs to show it can make chips for outside customers and actually turn a profit.
Intel faces a different hurdle now. It’s not only about buyers coming back to chip names. The question is whether investors still see Intel as an AI recovery play, even as the market turns picky and stops buying every dip.
