$Advanced Micro Devices(AMD)$ $NVIDIA(NVDA)$ $Broadcom(AVGO)$ $Intel(INTC)$
Thursday’s sell-off raises an interesting question. If AI chip demand still exceeds supply, why are semiconductor stocks falling?
Intel dropped 5.34%, Broadcom lost 4.35%, AMD fell 3.90%, and Nvidia declined 2.94%, according to the figures reported in the market update.
Meanwhile, AMD CEO Lisa Su has indicated that AI chip demand continues to exceed supply, with production constrained by factors including high-bandwidth memory (HBM), advanced packaging and wafer capacity.
The interesting part is that strong demand doesn’t automatically mean rising share prices.
1. Demand is strong, but delivery is the real test
AI companies want more computing power, but chipmakers cannot turn every order into immediate revenue. Manufacturing capacity, packaging and memory availability all affect how quickly demand becomes actual sales.
If supply expands while demand remains strong, chipmakers could benefit from higher shipments. However, investors need to see that reflected in quarterly results.
2. The market is looking beyond today’s headlines
Investors are not just pricing in current demand. They are also estimating how much AI infrastructure customers will buy over the next few years.
What happens if major technology companies slow their spending? What if chip supply catches up faster than expected?
Even excellent businesses can see their valuations fall when expectations become too optimistic.
3. Not every chip stock faces the same opportunity
Nvidia is closely associated with AI accelerators. AMD competes in data-centre processors and AI accelerators. Broadcom benefits from custom AI chips and networking, while Intel has its own manufacturing and foundry ambitions.
They operate in the same broad semiconductor ecosystem, but their growth drivers, competitive positions and financial risks differ.
A sector-wide sell-off does not necessarily make all four equally attractive.
4. What I would watch next
Rather than buying simply because prices have fallen, I would focus on three indicators:
• Revenue growth: Are AI-related sales continuing to accelerate?
• Supply expansion: Can manufacturers increase output without sacrificing margins?
• Customer spending: Are hyperscalers continuing to commit substantial capital to AI infrastructure?
These will help determine whether the sell-off represents a temporary setback or a change in the growth outlook.
My take
I wouldn’t dismiss the AI chip opportunity just because semiconductor shares have a weak session. But I also wouldn’t assume that management’s confidence guarantees future returns.
The key question is whether earnings can grow fast enough to justify current valuations.
If you had to choose one after this sell-off, would you pick NVDA for its AI ecosystem, AMD for competition in AI computing, AVGO for custom chips and networking, or INTC for a potential manufacturing turnaround?
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