AMD and NVDA drop over 5% intraday as margin calls force liquidations despite strong fundamentals and retail bullishness.
Semiconductor stocks plunged on July 27, 2026, as leveraged sellers drove sharp intraday declines. AMD fell 8.31%, NVDA dropped 4.92%, and Intel shed 3.54%, while the VanEck Semiconductor ETF (SMH) declined 4.06%, extending its one-month loss to 9.33%.
The selloff stems from margin desks forcing liquidations after AMD and Intel surged 144% and 150% year-to-date, respectively. Despite the pullback, retail sentiment remains bullish, with AMD scoring 82 (Very Bullish) and NVDA 62 (Bullish) on Reddit.
The reversal reflects risk-management protocols at leveraged funds, not a shift in fundamentals. Margin calls are accelerating the decline, creating a sector-wide correction.