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Intel Plunges 16%. Why Nvidia, AMD and Micron Didn't Care?

After  $Intel(INTC)$  reported Q4 earnings and its shares plunged 16%, the semiconductor sector did not come under broad pressure. Instead, $NVIDIA(NVDA)$   , $Advanced Micro Devices(AMD)$  , and $Micron Technology(MU)$   moved higher. The market response suggests investors saw Intel's results as a company-specific issue rather than a sign of weakening industry demand, while reinforcing the divergence in positioning and pricing power across the AI supply chain.

Intel's earnings themselves did not point to cooling AI or server demand. Data Center and AI revenue rose 15% quarter over quarter, with management stressing that server CPU demand remains strong and that capacity—not orders—is the main constraint. At the same time, Intel flagged rising memory and storage costs and near-term pressure from process ramp-ups, highlighting challenges tied to cost structure, capacity allocation, and execution rather than downstream demand.

In that context, gains in Nvidia and AMD were unsurprising. Intel's confirmation of strong server demand reinforced the view that the AI investment cycle is still expanding. Nvidia's role as the core AI server platform supplier remains intact, while comments about strong demand but limited supply further underscored its strategic position. AMD, meanwhile, continues to benefit from server CPU share gains and a more meaningful ramp in AI accelerators as overall AI server shipments grow.

Micron's strength reflects the clearest "reverse signal" from Intel's report. Management noted that surging memory and storage prices are compressing the PC addressable market and could weigh on shipments later in the year. Research firms estimate AI-driven demand is pushing memory-related component costs up 40%–50% quarter over quarter, a trend that has persisted for several quarters. If demand were truly weakening, memory would not be leading with sustained price increases. Instead, Intel's cost pressure points to a tight supply-demand environment where memory suppliers have gained pricing power, especially as capacity is increasingly directed toward AI data centers and high-end DRAM and HBM.

Overall, Intel's earnings did not spark concern about the broader semiconductor cycle. Instead, they sharpened the distinction between winners and pressured players in the AI supply chain. Nvidia and AMD continue to benefit from durable compute and server demand, while Micron gains from AI-driven memory tightness and rising prices. AI capital spending remains intact, with pricing power concentrated in compute platforms and memory.

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