Intel and AMD lead semiconductor rout on FOMC day uncertainty, SOXX -5.92%

Intel Corp. and Advanced Micro Devices retreated 8.4% and 7.3% respectively on Monday as the Federal Open Market Committee began its two-day policy meeting, triggering a wave of profit-taking across a semiconductor sector that had surged more than 9% over the prior five sessions. The S&P 500 slipped 0.6% to 7,511 and the Nasdaq Composite fell 1.2% to 26,376, while the Philadelphia Semiconductor ETF (SOXX) shed 5.9% to close at $591, its sharpest one-session decline in two weeks.

Today's biggest movers

Intel retreats 8.4% as post-upgrade euphoria fades

Intel Corp. (NASDAQ: INTC) shed 8.4% to $117.05, retracing a significant portion of the 12% surge recorded Thursday and Friday after Bank of America analyst Vivek Arya issued a rare double upgrade, moving the shares from Underperform to Buy with a price target raised to $135 from $96. Arya cited two catalysts: accelerating server CPU demand tied to agentic AI workloads and improved Intel Foundry visibility following reports that Alphabet plans to have Intel manufacture more than three million tensor processing units by 2028. The fundamental backdrop had already reinforced the bull case; Intel's first-quarter revenue of $13.58 billion beat consensus by roughly $1.16 billion, with the Data Center and AI segment rising 22% to $5.1 billion. Monday's selloff is a textbook buy-the-news reversal; the stock still closed well above its pre-upgrade price, and the next scheduled earnings report is July 23.

AMD gives back Citi upgrade gains as profit-taking intensifies

Advanced Micro Devices Inc. (NASDAQ: AMD) fell 7.3% to $507.29 in volume of 26.9 million shares, unwinding a portion of the 15% gain recorded earlier in the week. Citigroup analyst Christopher Danely upgraded AMD to Buy on June 12, raising his price target to $575 from $460, arguing that the market is underestimating the scale of Meta Platforms' purchasing commitments for AMD's AI accelerators. The stock's year-to-date advance of 127% and a forward price-to-earnings multiple of approximately 84 times left it exposed to any sentiment shift; Monday's FOMC meeting provided that catalyst. AMD's next earnings date is August 3. For context on the analyst upgrade wave that drove the prior week's advance, see our June 12 recap.

Broadcom extends post-earnings weakness despite strong AI revenue

Broadcom Inc. (NASDAQ: AVGO) slipped 4.4% to $376.71, continuing the consolidation that followed its June 3 fiscal second-quarter report. Broadcom posted quarterly revenue of $22.19 billion, a narrow miss against the $22.27 billion consensus, while AI chip revenue of $10.8 billion doubled on a year-over-year basis. Management guided fiscal third-quarter revenue to approximately $29.4 billion, above the $28.53 billion Wall Street had modeled. However, chief executive Hock Tan declined to raise Broadcom's fiscal 2027 AI semiconductor revenue target of $100 billion; investors interpreted that decision as a ceiling on near-term upside, sending the stock down roughly 15% in the post-earnings session and leaving it range-bound through Monday. Broadcom's AI revenue is on pace to reach $16 billion in the current quarter, a run rate that could challenge the flat FY2027 guidance if sustained.

Lam Research and ASML surrender recent gains

Lam Research Corp. (NASDAQ: LRCX) fell 5.0% to $369.34 despite a price-target increase to $400 from $330 issued by Oppenheimer the prior day, the latest in a series of upward analyst revisions over the past two weeks. Lam's chief financial officer indicated last month that the global wafer fab equipment market is expected to reach $140 billion, up from prior estimates, driven by intensifying AI infrastructure investment. The company has posted three consecutive quarters of record revenue; Monday's decline reflects sector-wide selling rather than any company-specific deterioration.

ASML Holding N.V. (NASDAQ: ASML) dropped 4.7% to $1,803.89, reversing a portion of the 9.5% advance recorded last Thursday. Goldman Sachs had reiterated its Buy on June 10, and Bank of America raised its price target to 1,921 euros from 1,710 euros, with Barclays lifting its target to 1,900 euros on the same date. Forty-four analysts maintain an average Buy rating with a consensus price target near $1,915; Monday's pullback looks like routine consolidation after a sharp one-week advance.

Notable but quieter

Meta Platforms Inc. (NASDAQ: META) and Alphabet Inc. (NASDAQ: GOOGL) were the only two names in our 25-stock universe to close in positive territory, rising 1.1% and 1.1% respectively. Both are positioned as AI infrastructure buyers rather than sellers; their relative strength on a down day for chip stocks reflects the distinction between demand-side and supply-side AI exposure. The four major cloud hyperscalers have collectively committed approximately $750 billion in AI capital expenditure for 2026, a figure that underpins demand visibility for the semiconductor names that sold off on Monday.

ARM Holdings plc (NASDAQ: ARM) fell 3.9% to $396.34, pulling back after a 97% one-month advance that included an 8.3% surge last Friday tied to the Strait of Hormuz peace-deal rally. As covered in our June 15 recap, ARM is up 245% year to date and carries a separate regulatory overhang from an FTC antitrust inquiry into its chip-licensing practices. Super Micro Computer Inc. (NASDAQ: SMCI) slid 5.3% to $29.22, still weighed by the previously announced $7 billion equity raise to finance an approximately $39 billion AI server backlog. NVIDIA Corp. (NASDAQ: NVDA) fell 2.4% to $207.41, finishing well off its intraday low; the session was orderly relative to the broader semi rout, consistent with NVDA's status as the sector's most liquid name.

What to watch tomorrow

The FOMC rate decision and Chair Jerome Powell's press conference on June 17 are the most important near-term catalysts for AI stocks. With U.S. consumer inflation running at 4.2%, any hawkish signal from Powell could extend selling pressure across rate-sensitive growth equities; a balanced tone could stabilize semiconductor names after Monday's rout. On the company calendar, Intel's earnings on July 23 and AMD's on August 3 are the next major sector data points. Lam Research's next quarterly call will be watched closely for any update to the $140 billion wafer fab equipment market forecast, and any investor-conference commentary from Broadcom on whether the $100 billion FY2027 AI revenue target faces upward revision remains the key swing factor for the broader complex.

Not investment advice.