Nvidia, AMD and Intel stocks attracted tentative buying interest ahead of Tuesday’s US session after a bruising global semiconductor sell-off, as investors weighed bargain prices against worries about AI spending and PC demand.
In Tuesday’s pre-market trading, Nvidia gained 1.51%, AMD surged 2.73% and Intel advanced 2.48%, signalling renewed buying interest after a sharp semiconductor sell-off.
The gains come ahead of AMD’s quarterly earnings announcement, as investors reassess whether recent declines in AI chip stocks have gone too far.
Nvidia’s pre-earnings bounce reflects renewed confidence in AI data-centre demand.
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Nvidia stock lost 4.22% on Friday and another 1.26% on Monday, closing at $202.06, as investors questioned whether cloud companies could keep financing enormous data-centre projects.
Demand has not yet reflected those fears. Nvidia’s latest reported quarterly revenue doubled to $96.2 billion, with data-centre sales jumping 117% to $89 billion.
Management previously forecast about $108 billion in revenue for its fiscal third quarter, results due November 17.
That leaves it exposed to the spending plans of major cloud buyers. Even without cancelled orders, concerns about borrowing costs and future AI returns can undermine the price investors are willing to pay for Nvidia’s earnings.
Yardeni Research president Ed Yardeni told CNBC-TV18 on Monday that the retreat was “taking some air out of the AI bubble”, according to Stocktwits.
He argued that lower valuations could create opportunities because the technology’s growth prospects remain intact.
AMD shares dropped 7.52% on Monday to $466.84 before climbing in Tuesday’s early trading. Its third-quarter results follow Tuesday’s close.
Wall Street expects approximately $13.1 billion in revenue, up nearly 42% from a year earlier, and adjusted earnings of $1.95 a share. Investors will scrutinise its data-centre business, including server processors and AI accelerators, alongside the outlook for personal computers.
Morgan Stanley analyst Joseph Moore raised his AMD price target to $510 from $465 while retaining a Hold recommendation, according to TipRanks.
He expects server growth to help offset PC-market weakness but sees risks from supply constraints and competition with Nvidia.
BMO Capital’s Harsh Kumar takes a more bullish view, keeping a Buy recommendation and $550 target on expectations of stronger sustained demand from cloud providers.
The contrast is important. AMD could benefit if customers diversify their AI-chip purchases, but its margins and delivery capability still need to justify ambitious forecasts.
Strong results and guidance could support the rebound; another disappointment would revive doubts about broader chip demand.
Intel endured harsher selling. Shares plunged approximately 28.6% on Friday and another 8.8% on Monday, ending at $59.97, after its fourth-quarter forecasts missed expectations.
Third-quarter revenue rose 21% to $16.5 billion, but fourth-quarter guidance of $15 billion to $16 billion missed analysts’ $17.1 billion estimate. Its adjusted earnings forecast of 25 cents a share also missed estimates near 43 cents.
Management warned that weak PC demand could persist into the first half of 2027. Expensive memory is lifting PC prices as supply constraints complicate recovery.
Barclays analyst Thomas O’Malley cut his price target to $75 from $100 on Monday, maintaining an Equalweight rating, according to analyst-rating records. The reduction illustrates how much confidence has deteriorated despite the stock’s decline.
Unlike its rivals, Intel must improve execution as well as demand. Investors need evidence of better forecasts and margins before treating a modest recovery as a turnaround.
