Nvidia (NVDA), AMD (AMD), Intel (INTC), and Broadcom (AVGO) stocks are sliding in pre-market trading Monday as investors reassess the outlook for AI spending. Intel was down 6% in the latest pre-market trading, while AMD fell 5.03%. Broadcom dropped 3.46%, and Nvidia declined 2.38%. The selling follows a broader retreat in AI and semiconductor stocks around the world.
The move follows comments from Anthropic CEO Dario Amodei, who called on the industry to “slow down” AI development. OpenAI CEO Sam Altman and Elon Musk also backed the call. Investors are now questioning whether a slower development cycle could affect demand for AI hardware.
Oil prices above $100 a barrel and elevated Treasury yields are adding to the pressure ahead of this week’s Federal Reserve meeting.
Why Are Semiconductor Stocks Down Today?
The sell-off is hitting companies across the AI hardware chain. Nvidia and AMD are major suppliers of AI accelerators. Broadcom benefits from demand for custom AI chips and networking products. Intel has exposure to data-center CPUs and is expanding its AI business.
The weakness is not tied to a single earnings report or company announcement. Chip stocks across Asia also moved lower. SK Hynix (SKHY) shares fell 6.35% in Seoul on Monday. The KOSPI Index dropped 3.26%, giving up its weekly gains. Samsung Electronics (SSNLF) fell 4.05%.
Several semiconductor stocks had also posted strong gains recently. Some investors may now be locking in gains as sentiment turns weaker.
Oil and Fed Concerns Add to the Selling
The broader market is also dealing with higher energy prices and rising bond yields. Brent crude has climbed above $100 a barrel after tensions in the Middle East disrupted energy infrastructure. Higher oil prices can push inflation higher and make it harder for the Federal Reserve to cut rates.
The 10-year Treasury yield has also moved toward 5%. Higher yields can weigh on high-growth stocks because future earnings become less attractive. Meanwhile, hotter-than-expected U.S. core inflation has increased concerns about a possible Fed rate hike at the September 15–16 FOMC meeting.
Higher inflation and borrowing costs can put further pressure on semiconductor stocks, which tend to trade at higher valuations based on expectations for future growth.
Wall Street’s Take on AI Chip Stocks
According to the TipRanks Stock Comparison Tool, Nvidia, AMD, and Broadcom have Strong Buy ratings, while Intel has a Hold rating. Nvidia has 48.56% upside, followed by Broadcom at 43.43%, AMD at 25.07%, and Intel at 12.80%.
