Semiconductor Stocks Face Pressure Amid AI Concerns and Economic Data Watch

A broader sell-off in the semiconductor sector weighed on shares of Intel (INTC) this week, with the stock declining approximately 1.4% during Tuesday’s trading session. The weakness appears driven more by sector-wide apprehension than by company-specific issues, with investor focus fixed on the sustainability of the artificial intelligence boom and upcoming key economic indicators.

Economic Calendar Takes Center Stage

Market participants are closely monitoring two imminent data releases. The primary focus is on the Personal Consumption Expenditures (PCE) price index due Friday, which serves as the Federal Reserve’s preferred gauge of inflation. Additionally, the minutes from the Fed’s January policy meeting, scheduled for release Wednesday, are being scrutinized for clues on the future path of interest rates. The outlook for borrowing costs directly influences the valuation of growth-oriented technology equities.

AI Enthusiasm Meets Market Skepticism

The pressure extended beyond Intel, with the benchmark Philadelphia SE Semiconductor Index also retreating. A growing sense of caution is emerging around the blistering pace of AI development. The recent announcement of several new AI models has prompted investors to question which technology business models are built for long-term success and which may be vulnerable as the sector evolves. The market is currently in a phase of determining the likely winners and losers of the AI revolution.

Should investors sell immediately? Or is it worth buying Intel?

Intel’s Recent Performance and Developments

Against this backdrop of sector uncertainty, Intel’s most recent financial report showed resilience. In late January, the chipmaker announced fourth-quarter results that exceeded analyst expectations, posting revenue of $13.67 billion and earnings per share of $0.15. Looking ahead, the company provided first-quarter 2026 revenue guidance in the range of $11.7 billion to $12.7 billion.

In a separate business update, Intel recently paid a penalty in India related to anti-competitive warranty practices and subsequently withdrew the associated policy.

The current softness in Intel’s share price is interpreted as a reflection of industry-wide headwinds rather than a verdict on its individual prospects. The trajectory for semiconductor stocks will likely hinge on the forthcoming economic data and whether the present anxiety around AI investment proves to be a temporary correction or the start of a more significant sector re-rating.