<div id="readability-page-1"><div><figure></figure>Shares of Intel (INTC) and Advanced Micro Devices (AMD) are bleeding red this morning amidst a broader macro-driven sell-off across the US semiconductor names.Investors seem to be taking profit following parabolic multi-week rallies that have seen valuations soar to historic extremes.In fact, UBS analysts labeled current multiples as “statistical outliers” – flashing bubble-like signals in a research note today.Plus, this mass exit is being exacerbated by defensive positioning ahead of Nvidia’s “high-stakes” quarterly results scheduled to be revealed on May 20.With a 95% probability of a “beat and raise” already priced into the market, investors are choosing to de-risk across the entire AI complex rather than gamble on further upside.Why AMD stock is slipping todayWhile AMD remains a favourite of the AI revolution, it’s currently buckling under a surge of macro volatility.The 10-year Treasury yield climbed to a new high on Friday, draining liquidity from high-growth tech stocks whose future earnings are now being discounted at a higher rate.Compounding this “risk-off” sentiment are escalating Middle East tensions involving Iran – which have spiked Brent crude prices and revived fears of “sticky” inflation.Consequently, the futures market is now pricing in higher odds of a Fed “rate hike” rather than the long-awaited cut, a scenario that is toxic for capital-intensive industries like chip manufacturing.Adding fuel to the fire on May 15 is a new report from UBS, warning that the AI server gold rush is entering a hyper-competitive phase.As Arm-based chips and custom silicon gain traction, analysts fear the margins for traditional x86 CPU players could be squeezed, forcing a re-evaluation of AMD shares’ premium multiple.Why Intel shares are crumbling todayBeyond the aforementioned macroeconomic headwinds, Intel stock is also seeing pressure because of a more localized catastrophe.UBS data reveals a staggering blow to its core business: Intel’s server CPU market share has tanked to 54.9%, marking a brutal sequential decline of 370 basis points.The losses aren’t just in the data center; whispers in the valley suggest that INTC’s much-vaunted foundry partnership with Apple is significantly smaller in scope than investors had hoped.Reports now indicate the deal may be restricted to legacy, lower-end components only, rather than flagship 2nm mobile processors.This has left Intel vulnerable, as it has been the highest-beta name in the semiconductor group this year.Because of this massive overextension, INTC is leading the pullback in semiconductor names – as the “first in, first out” mentality takes hold among institutional investors looking to protect year-to-date gains.At the time of writing, Wall Street firms have a consensus “hold” rating on Intel, with a mean price target of just $83, signaling potential downside of another 23% from here.</div></div>

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Intel (INTC) and AMD stocks are declining amid a broader sell-off in the US semiconductor sector, driven by profit-taking after significant rallies. UBS analysts warn of bubble-like valuations and heightened risks ahead of Nvidia's quarterly results. Additionally, rising Treasury yields and geopolitical tensions are impacting investor sentiment. Intel faces specific challenges, including a drop in server CPU market share and a limited partnership with Apple, leading to a consensus 'hold' rating with potential downside for its stock.

- Shares of Intel (INTC) and Advanced Micro Devices (AMD) are declining due to a broader US semiconductor sell-off and profit-taking after significant recent gains.  
- UBS analysts warn of bubble-like valuations and heightened risks amid increasing macro volatility, including rising Treasury yields and geopolitical tensions, which have negatively impacted liquidity and investor sentiment.  
- Additionally, Intel's market share in server CPUs has dropped significantly, coupled with concerns about its partnership with Apple, further contributing to a pessimistic outlook reflected in a consensus “hold” rating.

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Intel stock sinks on company-specific concerns, AMD caught in sector-wide sell-off