Super Micro leads AI chip rout as Alphabet Gemini delay rattles sector, SOXX -4.5pct

Super Micro Computer Inc. plunged 8.2 pct and the broader AI chip universe extended a multi-week retreat on Thursday, as a Bloomberg report that Alphabet was behind schedule on Gemini 3.5 Pro deepened investor anxiety about the pace of AI model delivery. Taiwan Semiconductor Manufacturing Co. reported strong second-quarter results and raised its full-year outlook, but the news backfired as it underscored the scale of capital expenditure commitments. The PHLX Semiconductor index fell 4.5 pct, the Nasdaq Composite dropped 1.5 pct and the S&P 500 closed down 0.5 pct at 7,533.77.

Today's biggest movers

Super Micro tumbles 8.2 pct as patent risk and competition weigh

Super Micro Computer Inc. (NASDAQ: SMCI) was the session's largest decliner, falling 8.2 pct to $24.68 in heavy volume. The server and storage specialist has been contending with a pair of headwinds that have kept buyers at bay: ongoing patent infringement investigations and intensifying competition from Dell Technologies and Hewlett Packard Enterprise in the AI server market. SMCI's intraday range ran from $24.66 to $26.72, a swing equivalent to more than 8.3 pct of closing price and among the widest of any name in the AI universe on Thursday. The stock is now down 20.3 pct year to date and 15.5 pct over the past month, having surrendered most of its early 2026 rally. Next earnings are due August 11, and investors will be looking for management commentary on backlog trends and margin recovery.

Oracle falls 6.3 pct despite cloud strength

Oracle Corp. (NYSE: ORCL) dropped 6.3 pct to $124.21, extending a year-to-date loss that now stands at 36.5 pct. The irony is that Oracle's most recent quarterly results were unambiguously strong: in its fiscal fourth quarter ending May, cloud revenue rose 47 pct to $9.91 billion and the company posted adjusted earnings per share of $1.79, well above the $1.58 consensus tracked by LSEG. The company maintained its $90 billion fiscal 2027 revenue target and issued first-quarter guidance calling for 27 pct, 29 pct revenue growth. Yet the stock has been unable to recover from its post-earnings re-rating as investors discount the capital expenditure intensity needed to hit those targets. The average 12-month analyst price target sits at $251.85, more than double Thursday's close, according to LSEG. Oracle's next scheduled earnings date is September 9.

Intel slips 5.8 pct ahead of July 23 earnings

Intel Corp. (NASDAQ: INTC) fell 5.8 pct to $96.98, erasing a portion of a year-to-date gain that still stands at 146.3 pct. The decline looks like textbook pre-earnings profit-taking: the stock has more than doubled since January on the back of the 18A foundry turnaround thesis, and investors are reducing exposure ahead of the Q2 2026 report due July 23. The key questions for the print are 18A process yields, data center demand and the pace of foundry customer commitments from Apple, Nvidia and Amazon. Analyst opinion spans the widest range in the sector: HSBC this month raised its price target to $200 from $100, calling the foundry progress and potential hyperscaler partnerships under-appreciated, while Rosenblatt carries a $65 Sell rating. The consensus is Hold, per data compiled by MarketBeat. The sector-wide selloff on Thursday added another layer of selling pressure, with Micron, AMD and Broadcom all declining alongside Intel, continuing a pattern seen in the July 13 selloff when Intel also fell 6.12 pct.

ARM falls 5.4 pct as HSBC downgrades on stretched valuation

Arm Holdings plc (NASDAQ: ARM) fell 5.4 pct to $262.01, extending a correction that mirrors the July 13 selloff when ARM lost 7.55 pct on Iran tensions; the stock has now pulled back 33.9 pct from its recent highs over the past month and 19.0 pct over the past five sessions. The chip design licensor has been caught in a valuation squeeze: the stock is still up 128.4 pct year to date, but analysts are increasingly arguing that the price has run ahead of near-term fundamentals. HSBC downgraded ARM to Hold from Buy this month, lifting its price forecast to $315 from $255 but stating the shares "have run well ahead of fundamentals" with limited near-term upside. The bull case is intact elsewhere on the Street: TD Cowen raised its target to $475 from $265 with a Buy rating, and UBS lifted its target to $470 from $260, also Buy. ARM reports fiscal first-quarter 2027 results on July 29, and investors will look for royalty rate trends and commentary on AI workload adoption. Benzinga noted this week that "Wall Street sounds alarm on stretched valuation" ahead of the print.

Salesforce bucks the trend, gains 3.4 pct on Agentforce traction

Salesforce Inc. (NYSE: CRM) was the standout on a broadly negative day, climbing 3.4 pct to $172.68 as the company's Agentforce AI agent platform continued to attract institutional buyers. The company disclosed in May that Agentforce annual recurring revenue had surpassed $1 billion in its fiscal first quarter of 2027, a 205 pct year-over-year growth rate that is hard to argue with. Goldman Sachs reiterated a Buy on CRM this week with a $242 price target, and Guggenheim, which upgraded the stock to Buy on July 1 with a $228 target, cited Salesforce's "strengthened AI strategy" as the core thesis. The stock remains down 31.9 pct year to date following a prolonged de-rating from its 2025 highs, but Thursday's divergence from a weak tape suggests institutional accumulation is under way. Not everyone is convinced: KeyBanc recently downgraded to Sector Weight, expressing concern about the timeline for Agentforce to convert ARR momentum into meaningful earnings contribution.

Notable but quieter

Advanced Micro Devices Inc. (NASDAQ: AMD) fell 5.3 pct to $500.94, declining on sector contagion ahead of its Advancing AI 2026 conference on July 22, 23, where the company plans to officially launch the Zen 6 Venice processor on TSMC's 2nm process node. Despite the day's drop, AMD is up 124.2 pct year to date, and Goldman Sachs and Stifel both carry price targets in the $600, $640 range.

Broadcom Inc. (NASDAQ: AVGO) dropped 5.0 pct to $374.45, an unusual outcome given the company announced on Thursday a renewed chip supply agreement with Apple Inc. valued at more than $30 billion through 2031, covering wireless components including FBAR filters and custom AI chips. The deal reaffirms Broadcom as Apple's long-term silicon partner but was not enough to offset broad sector selling. AVGO carries a 26-analyst Buy consensus with an average price target of $501.58.

Alphabet Inc. (NASDAQ: GOOGL) dropped 4.4 pct to $354.46 after Bloomberg reported the company is behind schedule on Gemini 3.5 Pro, its most capable AI model. The report was the session's most cited catalyst for the broader selloff: it fueled anxiety that the hyperscalers' aggressive AI roadmap timelines may be slipping, which in turn raised questions about near-term chip demand. Alphabet is up 12.5 pct year to date.

Dell Technologies Inc. (NYSE: DELL) slid 5.2 pct to $391.38, caught in the same AI hardware downdraft as Super Micro. Dell is still up 206.2 pct year to date, an extraordinary run driven by AI server demand, and analysts carry a median 12-month price target of $500. The company announced a $0.63 dividend with an ex-date of July 21.

What to watch next week

The earnings calendar heats up fast. Intel reports Q2 2026 results on July 23; investors will focus on 18A manufacturing yield data and whether key foundry customers have firmed commitments. AMD hosts its Advancing AI 2026 conference on July 22, 23, where Zen 6 Venice on TSMC 2nm will be formally unveiled. Arm Holdings reports fiscal Q1 2027 earnings on July 29; royalty rate trends and AI-workload licensing commentary will set the tone for the chip design licensor through year-end. Beyond earnings, watch for any follow-on reporting on the Gemini 3.5 Pro delay: if the Bloomberg story is confirmed or denied by Alphabet, it will move the hyperscaler complex. Oracle's next scheduled print is September 9.

Not investment advice.