Intel drops 4% in pre-market as chip selloff extends to third day

Intel Corp. shares dropped more than 4% in pre-market trading Wednesday, extending a semiconductor selloff that has erased roughly 14% this week.

"The chip sector is repricing after a massive run-up, and Samsung's beat-but-sell reaction was the trigger," said Hans Mosesmann, analyst at Rosenblatt Securities.

The decline follows a 9.5% plunge Tuesday that wiped out Monday's 5% advance after HSBC raised its price target on Intel. Samsung Electronics fell 7% in Seoul despite reporting preliminary quarterly profit that exceeded analyst forecasts, as investors concluded the strong results were already reflected in valuations. The weakness spread across the semiconductor complex, with Micron Technology, Advanced Micro Devices and other chip stocks also under pressure in pre-market trading.

The selloff has erased roughly $90 billion from Intel's market capitalization this week, with the stock now trading near $140. The company reports second-quarter earnings July 23, where investors will scrutinize foundry losses and data center revenue for signs that its multibillion-dollar capital expenditure program is beginning to yield returns. Intel had surged more than 230% year-to-date before this week's decline, leaving valuations stretched and the stock vulnerable to profit-taking.

Nasdaq 100 futures fell 0.5% in early trading, reflecting the broader technology weakness. Intel's average daily volume stands at roughly 136.5 million shares, according to exchange data.

This article is for informational purposes only and does not constitute investment advice.