AMD Falls 7.6% as Chip Stocks Sell Off on AI Return, Capex Concerns

Advanced Micro Devices (AMD) fell 7.6% on Thursday as a broad semiconductor selloff hit chip stocks over doubts about the sustainability of AI spending and whether demand can support elevated valuations. The Philadelphia Semiconductor Index dropped about 6.7%. Intel (INTC) slid roughly 7.1%, Broadcom (AVGO) 3.9%, Nvidia (NVDA) about 4%, Qualcomm (QCOM) 2.3% and Taiwan Semiconductor (TSM) 1.5%. Lam Research (LRCX) tumbled nearly 12% after its December-quarter revenue forecast of about $8.6 billion met but did not exceed expectations. The company reported quarterly revenue of $8.22 billion, up from $6.722 billion, and GAAP diluted EPS of $2.19 versus $1.81. Tesla (TSLA) cut its 2026 capital expenditure outlook to about $20 billion from more than $25 billion, stoking concern that AI infrastructure and equipment investment timelines could slip. Meta's (META) heavy AI capex and potential equity or debt financing added to worries about funding costs. The Nasdaq Composite fell 2.6% to 26,008.86, its worst day since June. The S&P 500 lost 1.2% to 7,663.43, while the Dow rose 11.89 points to 52,867.98.