Nvidia, AMD and Intel Lead Chip Stocks Sell-Off Amid Middle East Tension

Chip stocks sank Friday as escalating Middle East tensions weighed on the sector.

Nvidia NVDA fell 2%, while Advanced Micro Devices AMD slid 3%. Broadcom (AVGO) and Intel INTC each dipped about 2%. Arm Holdings ARM dropped 7%.

Crude oil jumped nearly 4% after the U.S. extended a pause on strikes against Iran’s energy infrastructure into April. The Pentagon is reportedly considering deploying up to 10,000 additional ground troops to the region.

Analysts have warned that oil prices could surge toward $200 a barrel if the conflict extends and the Strait of Hormuz remains closed. Some chip stocks moved higher, with Micron Technology MU climbing 2% and Applied Materials AMAT edging up less than 1%.

Investors sold off chip stocks amid concerns that a prolonged conflict could disrupt global supply chains and push inflation higher across the semiconductor industry. Oil prices show no signs of easing, and lingering geopolitical risks may keep chip stocks volatile in the near term.