Home / Business and Economy / AI Chip Rally Cools: Profit-Taking Hits Intel, Micron
AI Chip Rally Cools: Profit-Taking Hits Intel, Micron
13 May
Summary
- Chip stocks experienced a significant sell-off after a recent rally.
- Major chipmakers like Intel and Micron saw substantial losses.
- Investors are placing bets on further declines in semiconductor stocks.
Semiconductor stocks, which had seen a remarkable surge, experienced profit-taking on Tuesday, May 13, 2026. This led to a retreat in major indices like the S&P 500 and Nasdaq from record highs, though they recovered from intraday lows. Broadcom Inc., Intel Corp., and Micron Technology Inc. were among the biggest contributors to the S&P 500's decline.
The Philadelphia Semiconductor Index fell 3% after an earlier drop of as much as 7%. Intel shares had more than tripled in value, surging 227% in 2026, while Micron was up 169%, both benefiting from heavy AI infrastructure spending. "This selloff was way overdue after an incredible run," noted Chris Murphy of Susquehanna International Group, suggesting the pain might be short-lived due to widespread FOMO.
Some investors are positioning for continued declines, as seen with the Direxion Daily Semiconductors Bear 3x ETF, which surged 9.2%. Every constituent of the semiconductor index fell, except for Nvidia, which is set to report earnings next week. Meanwhile, the Dow Jones recovered from early losses triggered by hotter-than-expected inflation data, with April CPI at 3.8% year-on-year.
