Intel and AMD lead chip rally on Computex AI push as cloud software sells off, SOXX +1.76%

ServiceNow Inc. and Snowflake Inc. each shed more than 7.6% on Wednesday, leading a broad retreat in AI cloud-software names that had surged on first-quarter earnings beats in May, while Intel Corp. gained 4.4% on a full-stack AI showcase at Computex Taipei 2026 that lifted the SOXX semiconductor ETF 1.76% even as the broader market fell. The S&P 500 retreated 0.74% to 7,553.68 and the Nasdaq lost 0.89%. After the close, Broadcom Inc. reported second-quarter revenue of $22.19 billion, up 48% year-over-year, and guided third-quarter revenue to $29.4 billion - an 84% year-over-year increase that is likely to set the tone for Thursday.

Today's biggest movers

ServiceNow and Snowflake pace AI software retreat

ServiceNow Inc. (NASDAQ: NOW) dropped 7.64% to $117.90, its steepest single-day decline in several months, with no new earnings catalyst. The company reported first-quarter fiscal 2026 subscription revenues of $3,671 million, up 22% year-over-year, in late April; its next report is July 29. Wednesday's selling appears purely rotational: NOW had gained 28% over the prior month on those results and is now giving back ground as capital moves toward semiconductor names. The stock sits 44% below its 52-week high of $211.48.

Snowflake Inc. (NASDAQ: SNOW) fell 7.61% to $241.28, a day after the company held its Investor Day in New York. Snowflake's late-May earnings release sent the stock up 63% in a single week after Chief Executive Sridhar Ramaswamy described first-quarter fiscal 2027 results - revenue of $1.39 billion, up 33% year-over-year - as "the strongest sequential dollar growth in our history." At least 30 analysts raised their price targets to a median of $280. Wednesday's decline fits a sell-the-day-after-investor-day pattern, and SNOW still holds a 70.26% trailing-month gain despite today's loss.

Datadog and MongoDB extend the rout on profit-taking

Datadog Inc. (NASDAQ: DDOG) shed 6.99% to $250.33, extending a pullback from post-earnings highs. The observability platform crossed $1 billion in quarterly revenue for the first time in first-quarter 2026, with revenue of $1,006 million up 32% year-over-year and non-GAAP EPS of $0.60 beating the $0.51 consensus by roughly 18%, per reporting by Benzinga. The stock surged more than 30% on those results in early May; it is now digesting that move, though it retains a 71.78% trailing-month gain.

MongoDB Inc. (NASDAQ: MDB) fell 7.56% to $368.32, giving back a portion of the 18.1% gain it posted on June 1 following first-quarter fiscal 2027 results: total revenue of $687.6 million, up 25% year-over-year, with Atlas growing more than 29% year-over-year and adjusted EPS of $1.32 beating the $1.18 consensus. Monday's recap covered the initial market reaction in detail. Management raised full-year guidance, but broader software-sector selling on Wednesday overrode the fundamental case.

Intel surges 4.4% on Computex full-stack AI reveal

Intel Corp. (NASDAQ: INTC) gained 4.43% to $112.71 as Computex Taipei delivered what analysts called a full-stack AI narrative: Xeon 6+ data-center chips, 18A-based PC and edge AI platforms, and a new AI data-center chip slated for year-end that targets lower total cost of ownership by emphasizing cheaper memory and cooling - a direct undercut of NVIDIA Corp. on price rather than raw compute throughput. Wells Fargo, Barclays, and Mizuho all raised their Intel price targets during the session, each tying the bull case to accelerating demand for agentic CPU workloads, according to reporting by StocksToTrade. Intel started 2026 at $36.90; at $112.71, it has returned 186.21% year-to-date. Tuesday's session flagged Computex as the dominant chip catalyst of the week, and Intel's presentation appears to have been its centerpiece.

Advanced Micro Devices Inc. (NASDAQ: AMD) rose 4.02% to $542.52, moving in sympathy with the broader chip rally. AMD is up 142.77% year-to-date and 52.71% over the trailing month. The fact that both historical rivals gained more than 4% on the same day reinforces the idea that AI processor demand is broad enough to lift multiple architectures simultaneously.

Palantir slides 6.5% as valuation debate intensifies

Palantir Technologies Inc. (NYSE: PLTR) fell 6.55% to $142.20, reversing a portion of May's 13% gain. The company's first-quarter 2026 results were operationally exceptional: revenue grew 85% year-over-year, the U.S. business more than doubled, adjusted operating margin hit 60%, and earnings per share reached $0.34 versus $0.08 a year earlier. Yet those results have pushed the stock to a price-to-earnings ratio of approximately 171 times, a level now drawing explicit scrutiny. GuruFocus reported this week that investor Michael Burry flagged a potential head-and-shoulders technical pattern in PLTR that may indicate weakening bullish momentum. The 21-analyst consensus price target sits at $183.73 per MarketBeat, suggesting upside from current levels if hyper-growth continues, but a valuation that leaves no room for execution missteps.

Notable but quieter

Oracle Corp. (NYSE: ORCL) shed 5.83% to $230.33 ahead of fiscal fourth-quarter earnings on June 16, where the consensus calls for $2.00 in adjusted EPS on revenue of $19.48 billion. UBS raised its Oracle price target to $285 and Scotiabank lifted theirs to $290 on Tuesday, yet the stock has retraced 4% from its five-day high as investors position cautiously ahead of the report. NVIDIA Corp. (NASDAQ: NVDA) dipped 3.62% to $214.75 on 150 million shares of volume - the highest in our universe on the day - a rotation trade given SOXX's simultaneous 1.76% gain; Nvidia is up 13.71% year-to-date. Meta Platforms Inc. (NASDAQ: META) bucked the software tide, rising 4.24% to $622.98; the stock is down 4.22% year-to-date and attracted buyers looking for large-cap AI exposure that has underperformed peers in 2026. Palo Alto Networks Inc. (NASDAQ: PANW) fell 5.64% to $280.43, dragged lower with the broader cloud-security complex. Arm Holdings PLC (NASDAQ: ARM) added 2.26% to $411.83, its third consecutive session of gains, up 258.96% year-to-date as its chip-architecture royalty model captures value across every processor announced at Computex.

What to watch tomorrow

Broadcom Inc. (NASDAQ: AVGO) is the catalyst that will define Thursday's open. After Wednesday's close the company reported fiscal second-quarter revenue of $22.19 billion, up 48% year-over-year, with adjusted EBITDA of $15.24 billion (69% margin) and free cash flow of $10.26 billion. Third-quarter guidance of $29.4 billion implies 84% year-over-year growth - a figure that will force fresh debate over whether AI infrastructure spending is still accelerating or already priced into hardware names. AVGO closed at $479.23 before the report, up 37.86% year-to-date. Oracle earnings on June 16 are the next major scheduled catalyst for the cloud software group; the two weeks between now and then will test whether software names stabilize after Wednesday's broad retreat or whether rotation into hardware extends further.

Not investment advice.