Intel’s Historic Selloff Keeps Chip Stocks on Edge
Intel’s worst single-session drop since 1974 erased roughly $144 billion in value and rippled through chipmakers worldwide, even as Monday’s calmer trading and falling oil prices offered markets a reprieve.
Market Snapshot
All figures are indicative opening levels as of this morning, November 2.
Intel’s stock fell 28.58 percent Friday, its worst single-day decline since 1974, after fourth-quarter guidance badly missed Wall Street’s estimates.
Stocks pointed higher to open the week, with the Dow around 51,770.31, up 0.35 percent, the S&P 500 around 7,580.07, up 0.33 percent, and the Nasdaq around 25,437.00, up 0.61 percent, as markets found calmer footing after Friday’s chip-sector turmoil.
Gold held around $3,910.30, up 0.29 percent, and silver traded around $50.13, up 1.72 percent, while oil tumbled to around $99.50, down 4.44 percent, on renewed hopes for US-Iran diplomatic progress.
The VIX eased to around 19.34, down 0.41 percent, as traders assessed the fallout from Intel’s historic drop.
Intel closed around $65.76, down 28.58 percent, its steepest one-day fall in 52 years, after guiding fourth-quarter revenue to $15 billion to $16 billion, well below the $17.05 billion analysts expected.
Marvell fell to around $196.40, down 10.05 percent, even after confirming a $115 billion all-stock deal to acquire optical component maker Lumentum for its AI data center push.
Reddit dropped to around $91.73, down 29.22 percent, its worst day since going public, after warning that search referral traffic fell sharply as Google expands AI Overviews.
Main Story
Intel’s historic selloff anchored a broader reassessment of chip sector valuations heading into the new week, as investors weighed how much further artificial intelligence spending can support the group.
- Intel cited a planned shutdown at an Israeli manufacturing plant and continued softness in the personal computer market, guiding fourth-quarter adjusted earnings to $0.25 per share against a consensus near $0.44, wiping out roughly $144 billion in market value.
- The selloff rippled across the sector, with Qualcomm falling more than 11 percent, AMD dropping more than 10 percent, and Taiwan’s benchmark index sliding more than 800 points as TSMC shares fell below NT$2,310.
- Marvell’s $115 billion agreement to acquire Lumentum Holdings, one of the largest technology deals on record, underscored how aggressively chipmakers are still positioning for AI data center demand even as near-term guidance disappoints.
Chart of the Day
Intel shares traded around $65.76 Friday, falling well below both their 50-day average near $101.11 and 200-day average near $86.86, per TradingView and Barchart technical summaries.
The decline followed a fourth-quarter guidance cut that badly missed estimates, marking the company’s worst single-day drop since 1974 and erasing roughly $144 billion in market value.
Traders are watching whether shares can stabilize near current levels or whether concerns about Intel’s competitive position keep pressuring the stock this week.
Technical Trading
With Intel dominating the headlines, gold and silver technicals stayed in focus for metals traders:
- Gold held above $3,900 Monday, consolidating after last week’s volatility, with its relative strength index still oversold, a setup some technicians say leaves room for a further rebound.
- Ole Hansen of Saxo Bank noted silver continues to trade on a softer footing than gold, pushing the gold-silver ratio toward 74.50 even as both metals held gains Monday.
- Traders are watching whether gold can reclaim levels above $3,950 this week.
Global News
- Intel’s guidance shock rippled across Asia, sending Taiwan’s stock index down more than 800 points at the open and pulling TSMC shares below NT$2,310.
- OPEC+’s seven-country subgroup left December output quotas unchanged at a weekend meeting, with the full group set to reconvene November 29.
- Private surveys showed factory activity across Asia continued to expand in October, though growth slowed in major chip exporting economies, raising fresh questions about the artificial intelligence spending boom.
- Crude benchmarks fell sharply worldwide, with Brent crude down 4.49 percent to around $108.30, on easing fears of a wider Middle East conflict.
Texas News
Valero Energy agreed to acquire LyondellBasell’s former Houston refinery for $320.5 million, with plans to restart 165,000 barrels per day of light sweet crude processing by the end of 2027.
The deal adds roughly 700 acres on the Houston Ship Channel and 13.5 million barrels of storage to Valero’s Gulf Coast footprint.
Looking Ahead
Monday, November 2: Markets digest Friday’s historic Intel selloff and its ripple effects across the global chip sector, with attention turning to Tuesday’s U.S. midterm elections.
Tuesday, November 3: Traders watch Apple’s earnings report and the U.S. midterm elections for signals on both consumer tech demand and near-term policy direction.
The Y’all Street Podcast
Evan talks with Wasif Latif, Co-Founder and CIO of Sarmaya Partners, about his “Return to Tangibles” thesis: markets shifting from tech and long-duration financial assets toward energy, metals, commodities, and infrastructure. They cover what’s changed since the 2008 financial crisis, and frame AI as much a physical infrastructure story (power, natural gas, copper, uranium) as a software one. Latif ties it back to how he’s positioning around that view through Sarmaya’s LENS ETF.
Prices from Yahoo Finance, CNBC and Fortune. Technical levels from Investing.com and FXStreet. News from Reuters, Al Jazeera and CNBC.
For informational purposes only. Not investment advice. Prices are indicative opening levels and may differ from your broker.
