Why are Intel, Qualcomm, AMD stocks falling today?

Intel, Qualcomm, and AMD stocks declined sharply on Tuesday after a surge fueled by AI and foundry speculation. Intel dropped about 10% following a 100%+ rally in a month, while Qualcomm fell over 13% and AMD declined around 6%, reversing record highs reached the prior day. The pullback came as investors locked in gains from a broader semiconductor rally, with the iShares Semiconductor ETF up 77% this year amid AI-driven demand. Analysts noted that Intel’s stock already reflects optimism around its foundry ambitions, particularly reports of a preliminary deal with Apple to manufacture chips for its devices. Bank of America estimated such a deal could add $35 billion to $40 billion in annual revenue, though meaningful volumes are expected no earlier than 2028. Meanwhile, weakening PC demand—highlighted by a 27% month-over-month drop in notebook shipments—raised concerns for Intel and AMD, which rely heavily on traditional computing markets. Qualcomm’s decline followed a five-session surge of over 41%, but Wall Street remains cautious, with an average "Hold" rating and the stock trading above consensus targets. The company’s data-center chip shipments remain a longer-term growth driver, with no near-term catalyst to justify elevated valuations. Analysts warned that profit-taking and valuation risks could persist until revenue materializes. Deutsche Bank’s Ross Seymore cautioned that Intel’s current price already accounts for foundry momentum, while KeyBanc’s John Vinh linked April’s 27% drop in notebook shipments to negative pressure on PC-focused chipmakers. The broader semiconductor sector’s rally has outpaced fundamentals, leaving analysts wary of overvaluation in the near term.