Semiconductor Stocks Slide Ahead of NVIDIA Earnings: Intel Falls 5%, AMD Slides 4%, Taiwan Semiconductor Slips 3%

On Monday morning, semiconductor stocks declined as investors prepared for NVIDIA's upcoming earnings report. Intel's shares fell 5% to $85.98, leading the group, while AMD and Taiwan Semiconductor Manufacturing both experienced drops of 4% and 3% respectively. Despite NVIDIA's strong performance in the past, it has seen a negative 2% day-of move in each of its last four quarters, leaving the SOXX vulnerable.

Analyst Stanley Druckenmiller recently closed positions in Intel, Micron, and Broadcom while increasing his AMD stake. Analysts point to a potential negative impact on the entire complex due to NVIDIA's concentration in chip-heavy portfolios. Meanwhile, Japan's Ministry of Economy, Trade and Industry plans to request an additional 150 billion yen for Rapidus, a venture targeting 2-nanometer production by 2027. This development may impact the sector in the future.