Intel Corporation dropped over 6%, but despite NVIDIA’s decline, other semiconductor stocks rallied. The Philadelphia Semiconductor Index rose more than 1%.
On Wednesday, the semiconductor index climbed 1.18% to 5,309.69 points.
NVIDIA closed down 0.12% at $139.23, marking a healthy correction after its recent surge.
On the same day, NVIDIA received positive news. Wedbush Securities released a report highlighting strong demand for the new Blackwell chip.
Wedbush’s renowned analyst Dan Ives noted that after visiting relevant companies, he found that demand for NVIDIA’s Blackwell chip remains strong despite the recent DeepSeek shock in China, effectively dismissing concerns about the impact of DeepSeek.
NVIDIA has recently rallied on expectations surrounding the Blackwell chip. Despite the slight dip, NVIDIA’s stock has gained about 5% over the past five trading sessions.
Intel Corporation also fell over 6%, closing at $25.72, down 6.10%.
Behind Intel’s decline were concerns that Taiwan’s TSMC might not acquire Intel’s foundry division.
After U.S. Vice President JD Vance expressed plans to develop AI systems using American-made chips, the administration appeared to support strengthening domestic semiconductor firms.
This sparked speculation that the administration might block any potential acquisition of Intel by TSMC.
The previous day, Intel had surged over 16% on rumors of potential deals with TSMC and Broadcom.
Broadcom is reportedly seeking a stake in Intel’s chip design and marketing division, while TSMC is interested in acquiring a stake in Intel’s foundry (contract manufacturing) division.
This would involve a partial divestiture. Wall Street has viewed Intel’s potential split and divestiture positively.
Consequently, Intel had soared over 16% the previous day, bringing its five-day gain to about 28%. However, the 6% drop halted its recent rally.
In contrast, most other chip stocks advanced. Qualcomm rose 0.91%, AMD gained 0.36%, and Broadcom edged up 0.09%. This broad rally helped push the semiconductor index up more than 1% at the close.