Intel and AMD lead semiconductor rout on FOMC day uncertainty, SOXX -5.92%
1 min read
The story
The SOXX ETF fell 5.92% on FOMC day, with Intel and AMD singled out as leading decliners in what appears to be a broad rate-uncertainty-driven sector selloff rather than company-specific news. AMD enters the dip with 34.3% YoY revenue growth, 49.5% gross margins, and $2.65 diluted EPS, while Intel posts flat revenue (-0.5% YoY), razor-thin gross margins of 34.8%, and essentially zero net income at -$0.06 diluted EPS.
The macro overhang from the Fed is real, but the two stocks have very different fundamental backdrops — AMD is a structurally improving business being sold alongside a structurally challenged one. Watch whether AMD recovers faster on any Fed clarity or rate-cut signal, while INTC's weak earnings power leaves it more vulnerable if rates stay higher for longer and investor patience with its turnaround thins further.
The case — both sides
AMD's 34.3% YoY revenue growth and $2.65 diluted EPS give it a genuine earnings engine that should attract buyers faster post-selloff, while INTC's -$0.06 EPS and restructuring drag leave little fundamental support.
INTC, already deeply de-rated and with low expectations baked in, could outperform AMD on any market bounce precisely because its bad news is well-known and AMD still carries a premium multiple vulnerable to further rate-driven multiple compression.
The house read
Leans bullAMD and INTC have both been caught in the same macro selloff, but their fundamentals are sharply divergent — the question is whether this dip represents a better entry for AMD or a value trap for both.
Wrong ifIf the Fed signals a prolonged hold or hawkish surprise, growth semis like AMD with higher multiples suffer more than beaten-down value names like INTC; the pair could move adversely if AI capex concerns resurface simultaneously.
Published read · research, not advice