INTC, AMD, AVGO: Chip Stocks Lead Slide As Tech Gets Hammered Amid Renewed U.S.-Iran Tensions

• Brent crude climbed above $106 a barrel as hopes for a near-term U.S.-Iran truce faded.
• Higher energy prices are reviving inflation concerns and pressuring rate-sensitive tech valuations.
• Retail sentiment diverged, with Stocktwits users bearish on NVDA and AVGO but bullish on AMD and INTC.

Chip stocks led a broader technology selloff in Monday’s premarket as renewed U.S.-Iran tensions sent oil prices higher and revived concerns about inflation and interest rates.

Intel (INTC) fell 3.4%, Advanced Micro Devices (AMD) dropped 2.4%, while Nvidia (NVDA) declined 1%. Broadcom (AVGO) was also under pressure as investors pulled back from the high-growth technology trade.

The latest weakness follows a rebound in oil prices as hopes for a near-term U.S.-Iran truce faded. Brent crude rose about 2% to above $106 a barrel on Monday, while WTI climbed toward $94. 

The move followed President Donald Trump’s rejection of an Iranian proposal to reopen the Strait of Hormuz, although he said U.S. negotiators could continue talks this week.  

Oil Shock Revives Rate Fears

The renewed oil rally is particularly uncomfortable for equity investors because sustained higher energy prices can feed into inflation, potentially limiting the Federal Reserve’s ability to cut interest rates.

That is putting pressure on technology and semiconductor stocks, whose valuations are particularly sensitive to changes in interest-rate expectations. Treasury yields have also come under pressure as investors reassess the inflation outlook.

The timing adds another layer of caution for chip investors. The sector had just enjoyed a powerful AI-led rally, with AMD crossing the $1 trillion market-capitalization mark last week.

AI Trade Faces Macro Test

Investors are now weighing whether continued spending on AI infrastructure can offset the pressure from higher oil prices, inflation and bond yields.

Nvidia, Broadcom, AMD and Intel remain among the biggest beneficiaries of the AI infrastructure boom, but their shares are increasingly being traded against the broader macro backdrop.

With U.S. economic data and the September jobs report due later this week, markets could remain sensitive to any signs that higher energy costs are feeding into inflation and keeping monetary policy tighter for longer.

On Stocktwits, the retail sentiment was ‘bearish’ for NVDA and AVGO and ‘bullish’ for AMD and INTC.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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