Intel, AMD Fall 3% as AI Chip Rotation Continues; NVIDIA Holds

The selloff in Intel and AMD comes as investors reassess the financing behind AI infrastructure buildouts. Both companies make server processors that feed that expansion, placing them near the center of the trade. Intel's foundry business, which requires heavy spending on equipment and capacity, posted a large operating loss in its latest quarter, adding to concerns about the cost of its manufacturing push. AMD, by contrast, outsources production and relies on its Data Center lineup, which now generates the majority of its revenue, for AI accelerator demand. NVIDIA's slight gain suggests the rotation is not uniform across chipmakers, with its Data Center business serving many of the same cloud providers. Intel's latest quarterly report showed its strongest revenue growth in more than fifteen years, but the foundry loss remains a worry for investors.