Chips led Friday's selloff, and it was not just one stock.
Intel guided to fourth quarter revenue of $15 billion to $16 billion, below the roughly $17.1 billion analysts expected, and warned PC demand stays weak. Its shares fell about 29% on Friday, and the whole chip sector fell with it.
Here are 4 worth researching. 👇
📌 The Watchlist
1. SanDisk | $SNDK: SanDisk makes flash memory and storage used in data centers and devices. Its fiscal first quarter revenue rose 378% from a year earlier to $11.03 billion, data center revenue surged to $4.8 billion, and it announced an eight for one forward stock split, yet the shares still fell about 13% on Friday.
2. Micron Technology | $MU: Micron makes memory chips used in AI servers and devices. Memory demand from AI data centers has driven a huge run in memory stocks over the past year, yet Micron fell about 7% on Friday as even a rival's strong report failed to lift the group.
3. Advanced Micro Devices | $AMD: AMD makes processors for PCs and servers, competing with Intel in both. AMD reports quarterly results on November 3, with analysts expecting revenue of about $13.09 billion, so Friday's fall of about 10% sets up a direct test of the PC weakness story.
4. Broadcom | $AVGO: Broadcom makes custom AI chips and networking equipment for large data center customers. It fell about 5% on Friday in the wider semiconductor retreat, and William Blair trimmed it to Market Perform, citing valuation risk.
📌 The Part Worth Saving
A sector wide fall is a reason to research, not a reason to buy blindly.
Look for:
- Whether the problem is company specific, like Intel's PC guide, or sector wide
- Whether guidance, not the past quarter, is what moved the stock
- Whether memory prices are helping or hurting PC demand
- What the next catalyst is, starting with AMD on November 3
The best question: Is Friday's chip fall a warning about AI spending, or a PC problem in an AI costume?
Education only, not financial advice.
