Chip stocks fell by $400 billion in one day as Intel fell 9%

On Monday, chip stocks fell by more than $400 billion in market value, but about 7 in 10 stocks in the S&P 500 went up. Intel fell about 9% after a fall of 29% on October 30, when it gave a weak forecast. Chip and memory stocks decreased by about $3.7 trillion in value from October 6 to Monday, by Yahoo Finance numbers.

How it went

Memory and storage stocks were first in the chip boom in 2026. Micron and Sandisk fell 6% to 8%, as did other memory and storage makers.

Marvell fell more, as it agreed to a $115 billion deal for Lumentum. Nvidia fell less.

The numbers

• Chip stocks: more than $400 billion down in one session.
• Intel: down about 9% on Monday, after 29% on October 30.
• Nvidia: down about 16% since October 6.

What is not known

Adam Johnson, a fund manager, thinks the sell-off has all the risk in its price. John Chambers, an investor, also thinks the difference between winners and losers will increase.

Chip stocks went up in all 8 midterm cycles since 1994, but in 2002 and 2018 they first fell about 11%. AMD reports results on Tuesday.

Insight: Buyer spending moves chip prices

The spending of Microsoft was $45.2 billion, below the analyst average of $50.7 billion, and its cloud partners fell on October 28. Intel gave a weak forecast on October 30. It looks as if the market follows the spending of buyers, and one miss can pull all chip stocks down. Monitor the next spending reports of cloud firms for signs of risk to your suppliers.