Intel, AMD, and Taiwan Semiconductor shares fall after Bank of America highlights valuation concerns amid a semiconductor rally.
Shares of Intel, AMD, and Taiwan Semiconductor dropped sharply Wednesday, with losses of 7%, 5%, and 6%, respectively. The declines follow a Bank of America report warning of growing bubble risk in the artificial intelligence trade, though the firm stopped short of declaring a full-blown bubble.
The selloff reflects investor caution after an extended semiconductor rally, despite strong long-term demand for AI infrastructure. Bank of America urged greater valuation discipline, noting elevated expectations for leading chipmakers. The sector has benefited from robust data center and AI-related spending.
Market reaction underscores the tension between near-term valuation concerns and sustained demand for semiconductor technology. The pullback follows a period of significant gains for chip stocks, driven by optimism around AI adoption.