AI Chip Stocks Retreat As Intel Reverses
AI chip stocks pulled back as Intel reversed gains; AMD's Q1 beat and guidance renewed AI-chip flows amid profit-taking and inflation pressure.
KEY TAKEAWAYS
- Intel reversed gains, highlighting profit-taking risk despite AI-driven revenue growth.
- Intel Q1 revenue was $13.6B with AI-related sales about 60% of total.
- AMD reported $10.3B Q1 revenue and guided about $11.2B for Q2, renewing AI-chip interest.
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AI chip stocks pulled back after Intel Corporation (INTC) reversed gains on May 12, 2026, amid profit-taking and inflation concerns clouding data-center demand. The company reported a rebound in AI-related sales, while Advanced Micro Devices (AMD) posted stronger-than-expected first-quarter revenue and raised guidance.
Intel Volatility and AI Revenue
Intel reported first-quarter 2026 revenue of $13.6 billion, a 7.0% increase year-over-year. AI-related sales accounted for about 60.0% of total revenue and rose roughly 40.0% from the prior year. The Data Center and AI unit generated $5.1 billion, up 22.0% year-over-year.
Following a multi-week rally, Intel stock fell about 10.0% as investors took profits amid concerns that inflation could dampen data-center spending. U.S. regulators approved Intel’s increased investment in AI chip developer SambaNova Systems, enabling deeper collaboration. Some analysts estimate that if AI demand persists, Intel’s earnings could roughly double over one to two years.
AMD Results and Sector Drivers
AMD reported first-quarter 2026 revenue of $10.3 billion on May 5, 2026, up 38.0% year-over-year and exceeding a $9.9 billion consensus. The company provided second-quarter revenue guidance of about $11.2 billion. These stronger results and outlook have renewed investor interest in CPU and AI chip stocks amid ongoing sector volatility.
