By Moz Farooque, Celine Provini
Publication Date: 2026-11-05 00:37:00
Safe to say, it’s been a brutal week for chip stocks.
On Oct. 30 alone, the iShares Semiconductor ETF (SOXX) plunged 8.2%, wiping out an estimated $1 trillion in chip stock market value during the session.
Perhaps the biggest headline-maker was Intel (INTC), which suffered its worst one-day stock decline in half a century following its earnings report, as covered by CNBC.
And the company that has come to symbolize the AI boom, Nvidia (NVDA), isn’t offering much comfort.
That said, Melius Research analyst Ben Reitzes, rated five stars by TipRanks, revamped his Nvidia stock price target just days after Intel plunged nearly 29%, as reported by TheFly.
Reitzes still recommends buying Nvidia, even as its shares trade roughly 15% below their October high. So why would an analyst remain bullish while slashing his price target so dramatically?
The answer points to a financial risk that extends well beyond Nvidia’s powerful AI chips.
Intel’s historic crash sends a warning across the chip sector
Intel gave chip investors an expensive reminder on Oct. 30, with its stock tanking 29% following the company’s earnings report.
Interestingly, on paper, its Q3 showing looked solid. Revenue rose 21% to $16.5 billion, and its data-center and AI segment grew 78%. But management forecast just $15 billion to $16 billion in Q4 sales, missing Wall Street’s expectations by over $1 billion.