Intel stock collapse worsens as $3.5T chip rout spreads

A sharp reversal in semiconductor and memory stocks intensified on Nov. 2, even as most S&P 500 shares rose. The chip sector lost more than $400 billion in value that day, with Intel down about 9% after plunging nearly 29% on Oct. 30 following a disappointing forecast. Intel’s market value had fallen to less than half its level at September’s end. Micron, Sandisk, Seagate and Western Digital dropped roughly 6% to 8%, while Marvell fell amid its agreement to acquire Lumentum for $115 billion. Since Oct. 6, U.S.-listed chip and memory companies have shed about $3.7 trillion in value. Nvidia lost the most in dollars, around $896 billion; Intel’s nearly 47% decline was steepest among the largest companies.

Views differ on whether the rout is nearing a floor. Investor Adam Johnson argued that the selloff may already reflect the worst possible outcomes, a condition that can signal a bottom. Former Cisco CEO John Chambers expects a widening divide between winners and losers and remains bullish on Nvidia. Almanac editor Jeff Hirsch bought after the Oct. 30 plunge, citing a history of semiconductor gains from late October through June in the eight midterm cycles since 1994. However, chips fell another roughly 11% before recovering in 2002 and 2018. The next major test is AMD’s quarterly report, due after the market closes on Nov. 3.