Intel Stock Falls Over 4.8% as OpenShell Preserves an x86 Route

Intel (INTC) shares dropped 5% Monday amid AI development concerns, underperforming peers like Micron (MU) and Super Micro (SMCI). Tech executives warned of AI risks, reversing recent gains. Investors are reassessing AI-related chip stocks.

US chip stocks fell sharply on September 28, with ARM, Qualcomm, and others dropping over 3%, due to concerns about AI development slowdowns and rising Treasury yields. Nvidia (NVDA) rose 3% after announcing a $150B share buyback increase. The broader market also declined, with the S&P 500 down 0.51%.

Chip stocks fell Monday despite Nvidia's 3% gain after a $150B share buyback announcement. The Philadelphia Semiconductor Index dropped 2.6%. SK Hynix fell 5.68%, AMD dropped 5%, Micron declined 4.5%, and Intel fell 4.5%. Broader market selloff and inflation concerns weighed on tech stocks.

Chip stocks declined on Monday due to rising bond yields and AI safety concerns, with Arm Holdings (ARM) down 9%, Micron (MU) 4%, SK Hynix (SKHY) 6%, Intel (INTC) 6%, and AMD (AMD) 5%. Nvidia (NVDA) rose 2% after announcing new AI tools and a $150B share buyback. The PHLX Semiconductor Index (^SOX) fell over 2%.

Shares of AMD, Intel, Western Digital, Vishay, and Penguin Solutions fell 2.4% to 4.2% in early U.S. trading after OpenAI paused AI model training due to a security breach, raising concerns about hardware demand. Brent crude's rise to $106/barrel also added valuation pressure, according to Reuters. OpenAI's pause is the second in three months, impacting semiconductor stocks ahead of Micron's earnings report.

AMD, Nvidia, and other AI chip stocks fell premarket after OpenAI paused AI model training for safety checks. AMD dropped 2.5%, Intel 3%, and Nvidia 1%. OpenAI's pause introduces uncertainty for AMD's AI growth story, though it's not yet clear if this will impact broader AI infrastructure spending.