Intel Stock Falls Over 4% as SK Hynix Plunge Triggers Global Chip Selloff

Intel Corporation (INTC) shares fell 4.6% to $104.81 in morning trading, caught in a broad semiconductor selloff triggered by a record plunge in the stock of South Korean memory giant SK Hynix.

Sector-Wide Shockwave

The selloff originated after SK Hynix shares collapsed by more than 15% in Seoul, its worst single-day decline on record. According to Investing.com, the drop followed a domestic brokerage forecast that the chipmaker's second-quarter operating profit would miss market consensus by approximately 8%, citing weaker-than-expected pricing for high-bandwidth memory chips.

The negative sentiment quickly spread from Asian to European and U.S. markets, pulling down semiconductor stocks across the board. The contagion was severe in South Korea, where the Kospi index plunged around 9%, leading to a circuit-breaker halt. European chipmakers like ASML and Infineon also saw declines between 1% and 2%.

Company-Specific Headwinds

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Adding to the pressure on Intel, JPMorgan designated the stock as a top short idea. The bank argued that the stock's significant rally this year has already priced in a recovery in its foundry business and AI prospects that has not yet been reflected in its financial performance.

Several unresolved concerns continue to weigh on the company's outlook:

• Manufacturing challenges: Profitable yields from its crucial 18A manufacturing process are not anticipated until late 2026 or 2027.
• Competitive pressure: Rival AMD recently surpassed Intel in quarterly data-center revenue for the first time.
• Investor caution: The selling pressure comes less than two weeks before Intel is scheduled to report its Q2 earnings on July 23, prompting investor caution amid mounting uncertainty.

A separate announcement of a €5 billion ($5.7 billion) investment to expand its facility in Leixlip, Ireland, failed to offset the negative market sentiment.