Why did Intel stock fall so sharply during the selloff?
Intel shares dropped roughly 21%, per Forbes' own headline figure, as the stock got caught in a broader semiconductor reset alongside Micron, AMD and Samsung. Investors grew nervous that AI capital spending — which had already jumped 67% to $650 billion among hyperscalers — might not keep expanding at the pace the market had priced in.
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The AI Chip Rally Just Lost $1.3 Trillion in a WeekSemiconductor stocks erased roughly $1.3 trillion in July 2026 as Intel fell 21% and a Meta cloud-capacity report shook AI infrastructure bulls.
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