Chip stocks including Intel (INTC), Advanced Micro Devices (AMD), and Arm Holdings (ARM) opened in the red this morning mostly due to technical quarter-end positioning.
Amidst a lack of fresh positive catalysts, lingering earnings pressure and macroeconomic caution are also adding to the weakness in these semiconductor names on Jun. 29.
That said, INTC, AMD, and ARM remain a lucrative investments for 2026, with each having more than doubled since the start of this year.
Pension fund rebalancing is hitting Intel, AMD, and Arm
As the final trading days of June and the second quarter wrap up, massive programmatic selling is hitting the tape.
Institutional managers and US pension funds are undergoing mandatory quarter-end rebalancing.
Because semiconductor and AI infrastructure stocks like AMD, INTC and ARM have booked huge year-to-date gains, fund managers are forced to passively trim these winning, high-multiple tech names to buy lagging asset classes.
According to Wall Street experts, this rebalancing is driving an estimated $30 billion in passive outflows hitting artificial intelligence chip stocks disproportionately.
Follow-through from Micron earnings
The semiconductor sector is still recovering from post-Micron earnings pressure.
While underlying AI demand remains robust, the broader market interpreted the forward-looking guidance and current memory market constraints with extreme caution.
Why? Because demand outpacing supply is fabulous for MU, but for the likes of Intel, AMD, and ARM, it signals supply constraints that may significantly hit their own financial performance.
Micron’s earnings, therefore, triggered a “sell-the-news” event that pulled down the entire VanEck Semiconductor ETF (SMH) on Jun. 26.
That negative momentum is spilling into Monday’s session – adding to pressure on processing and architecture peers (AMD, Intel, ARM) at the time of writing.
Why else are Intel, AMD, Arm slipping today?
INTC, ARM, and AMD are under pressure this morning also because institutional managers are aggressively pulling capital out of chip stocks ahead of a key macroeconomic calendar week.
Investors are also staying cautious before two major events.
The first is a policy speech by new Federal Reserve Chair Kevin Warsh, which has raised expectations of a late-2026 rate hike.
The second is the June nonfarm payrolls report, prompting a “sell first, ask questions later” approach across the market.
On the flip side, investors should also note that Cantor Fitzgerald analysts recommended buying the dip in both Intel and AMD shares in a research note today.
The investment firm sees INTC stock hitting $150 by year-end – while its upwardly revised price target for AMD stock now sits at $700, indicating potential upside of a little under 35% in the Santa Clara-headquartered chip manufacturer over the next 12 months.
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