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Lattice Semiconductor, Applied Materials, AMD, Intel, and KLA Corporation shares are falling, what you need to know
What happened?
A number of stocks fell in the afternoon session after incoming Democratic senators called for brakes on the development of artificial intelligence data centers following midterm election results.
As reported by CNBC, the political rhetoric fueled a widespread sell-off across the chipmaking industry, where companies depend heavily on the rapid buildout of computing infrastructure. Separately, Reuters reported that Micron has paused work on a planned $4.5 billion memory-chip plant in Taiwan amid an extended labor dispute, according to a Bloomberg report cited by Reuters. The pause adds uncertainty around Micron’s capacity expansion, but the report attributed it to labor negotiations—not the debate over U.S. data center construction.
Calls to halt or slow AI data center construction directly threaten demand projections for high-performance semiconductor components and processing units.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Processors and graphics chips company Lattice Semiconductor (NASDAQ:LSCC) fell 9%. Is now the time to buy Lattice Semiconductor? Access our full analysis report here, it’s free.
- Semiconductor manufacturing company Applied Materials (NASDAQ:AMAT) fell 11.4%. Is now the time to buy Applied Materials? Access our full analysis report here, it’s free.
- Processors and graphics chips company AMD (NASDAQ:AMD) fell 15.2%. Is now the time to buy AMD? Access our full analysis report here, it’s free.
- Processors and graphics chips company Intel (NASDAQ:INTC) fell 6.5%. Is now the time to buy Intel? Access our full analysis report here, it’s free.
- Semiconductor manufacturing company KLA Corporation (NASDAQ:KLAC) fell 11.3%. Is now the time to buy KLA Corporation? Access our full analysis report here, it’s free.
Zooming in on AMD (AMD)
AMD’s shares are extremely volatile and have had 55 moves greater than 5% over the last year. But moves this big are rare even for AMD and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 5.6% on the news that investors returned to major chipmakers following steep previous-session declines and an aggregate $3.7 trillion sell-off sparked by concerns over artificial intelligence spending and neocloud debt. As reported by CNBC, the rebound brought relief across the semiconductor landscape, lifting key players including Nvidia, AMD, and Intel alongside the broader Philadelphia Semiconductor Index. The sector had faced intense downward pressure in prior sessions, weighed down by growing skepticism surrounding massive corporate outlays on artificial intelligence infrastructure and the sustainability of neocloud debt, which refers to financing raised by specialized cloud providers to purchase advanced computing hardware.
Despite these ongoing questions about the ultimate returns on enterprise AI spending, bargain hunters and institutional buyers stepped back into the market to scoop up shares at more attractive valuations after the historic retreat.
AMD is up 85.8% since the beginning of the year, but at $416.86 per share, it is still trading 35.8% below its 52-week high of $649.42 from October 2026. Investors who bought $1,000 worth of AMD’s shares 5 years ago would now be looking at an investment worth $3,045.
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