AMD, ARM, INTC, NVDA: Chip stock prices are falling across the board today. Here’s the reason why

The most closely watched earnings report of the quarter is tomorrow. That’s when AI chipmaking giant Nvidia will announce its third-quarter results. Ahead of those results, Nvidia shares are currently down in Tuesday trading. But NVDA shares aren’t the only chip stock that is falling today.

Here’s which other chip companies are seeing significant stock price declines today, and the likely reason why.

Chip stocks fall across the board

As of the time of this writing, major chipmaking giants and the companies that supply them are seeing their share prices fall. These include:

• Advanced Micro Devices, Inc. (Nasdaq: AMD): down 5.6%
• Arm Holdings plc (Nasdaq: ARM): down 3.9%
• ASML Holding N.V. (Nasdaq: ASML): down 2.2%
• Broadcom Inc. (Nasdaq: AVGO): down 1.7%
• Intel Corporation (Nasdaq: INTC):down 2.8%
• Micron Technology, Inc. (Nasdaq: MU): down 5.1%
• NVIDIA Corporation (Nasdaq: NVDA): down 2.8%
• QUALCOMM Incorporated (Nasdaq: QCOM):down 2.6%
• Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM): down 2.6%

The fall in chip stocks is part of a broader decline across multiple markets today.

Currently, the S&P 500 is down 0.87%, the Dow is down 1%, and the tech-heavy Nasdaq is down 1.3%.

Perhaps the most significant driver behind today’s market falls is the growing fear that the tech sector is in an AI bubble, and that if that bubble pops, it could send shockwaves not just through the stock markets but also through the economy.

The impact of an AI bubble popping in the broader economy is part of the reason even non-AI-related stocks are down today.

In addition to chip companies, other major tech players are also seeing their shares sink this morning, especially those that have a considerable amount of exposure to AI, including Microsoft Corporation (Nasdaq: MSFT), down 2.5%; Amazon.com, Inc. (Nasdaq: AMZN), down 3.2%; Alphabet Inc. (Nasdaq: GOOG), down 1%; and Meta Platforms, Inc. (Nasdaq: META), down 2.4%.

Tech giants with more limited AI exposure, such as Apple, are trading relatively flat. Currently, shares in Apple Inc. (Nasdaq: AAPL) are up about a tenth of a percent.

Why are chip stocks in particular focus?

Chip stocks are being scrutinized by investors today for one key reason: AI chip giant Nvidia announces its third-quarter earnings for fiscal 2026 tomorrow. As Fast Company previously reported, investor expectations for those earnings are high.

Nvidia previously forecast revenue of between $52.9 billion and $55 billion for the quarter. But investor consensus estimates show that most investors expect Nvidia to come in on the high end of that spectrum. A series of consensus estimates shows that investors expect Nvidia to report revenue between $54.8 billion and $55.2 billion.

But, a little more than 24 hours before Nvidia reveals if it’s met investors’ expectations, Wall Street seems to be getting the jitters, as investors and the media increasingly question whether the AI bubble is about to burst.

It is likely that if Nvidia doesn’t hit the lofty expectations many expect, it will be taken as a sign that an AI bubble is upon us. The sell-off in chip stocks this morning is likely due to investors taking some profits in case Nvidia misses its estimates.

Given that Nvidia acts as a bellwether for other chip companies and the AI sector as a whole, it is no surprise that investor jitters ahead of Nvidia’s earnings are spilling over to the stocks of other chipmaking companies.