Intel leads semi stocks lower as Tan steps down from board of directors

Intel (NASDAQ:INTC) shares dropped 6.3% Thursday, as rival semiconductor companies, such as Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD), followed suit.

The beleaguered Intel is also saying goodbye to board of director member Lip-Bu Tan, according to a report by Bloomberg. Tan, former CEO of Cadence Design Systems (CDNS), joined Intel’s board in September 2022.

Intel’s stock has plunged nearly 40% over the past month. On Aug. 1, Intel reported second quarter financial results and a third quarter outlook that all fell below consensus estimates. The Pat Gelsinger-led company also announced plans to slash its workforce by 15% and suspended its dividend. It has since been hounded by numerous rating downgrades and a steadily falling stock price.

Nvidia fell 3.66% by the close of market trading on Thursday, marking the end of a rally that saw the stock increase by more than 25% over the past week and a half.

The AI giant is slated to release its second quarter fiscal 2025 financial results next Wednesday. Analysts expect it to report earnings per share of $0.64 on revenue of $28.64B.

“On past earnings history, particularly in the last twelve to eighteen months, I would expect Nvidia to surprise the market yet again with an earnings beat,” said Seeking Alpha analyst Justin Ward. “If this is the case, we could see this stock bypass my original target from last quarter and look for $210 within the next 180 to 220 days.”

AMD closed down nearly 4% on Thursday. Similar to Nvidia, it also enjoyed a recent rally until today’s falter.

Other semiconductor stocks trending down today included ON Semiconductor (NASDAQ:ON) -4.3%, Micron Technology (NASDAQ:MU) -3.7%, NXP Semiconductors (NASDAQ:NXPI) -3.5%, Qualcomm (NASDAQ:QCOM) -3%, Taiwan Semiconductor Manufacturing Company (NYSE:TSM) -2.9%, Analog Devices (ADI) -2.5%, Texas Instruments (TXN) -2.2%, Broadcom (AVGO) -2% and Arm (ARM) -1%.