Should You Buy the Dip in Tech ETFs?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 06 2024
0mins
Source: NASDAQ.COM
Market Impact: NVIDIA shares fell over 6%, contributing to a $650 billion loss for the "Magnificent Seven" stocks, with concerns about delays in AI chip production affecting major tech companies like Microsoft and Google.
AI Investments and Future Outlook: Despite current market corrections, big tech firms continue to invest heavily in AI, with potential growth opportunities ahead, especially if interest rates are cut due to slowing job growth and cooling inflation.
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Analyst Views on INTC
Wall Street analysts forecast INTC stock price to fall
29 Analyst Rating
5 Buy
19 Hold
5 Sell
Hold
Current: 117.050
Low
20.00
Averages
39.30
High
52.00
Current: 117.050
Low
20.00
Averages
39.30
High
52.00
About INTC
Intel Corporation is a global designer and manufacturer of semiconductor products. The Company's segments include Intel Products, Intel Foundry, and All Other. Its Intel Products comprise Client Computing Group (CCG) and Data Center and AI (DCAI). CCG delivers platforms and processors that power PCs and edge devices, enabling enhanced performance, connectivity and user experience for consumer and commercial markets with capabilities that also support retail, industrial robotics and AI ecosystems at the edge. DCAI delivers workload-optimized solutions based upon its x86 architecture for data centers, including CPUs, AI accelerators, NICs, IPUs and custom ASICs, enabling performance and scalability for cloud, enterprise, telecommunication and HPC environments. The Intel Foundry segment comprises technology development, manufacturing and foundry services, developing new semiconductor process technologies and advanced packaging technologies. All Other segments include Mobileye and Other.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Intel's 18A Manufacturing Process Enters Risk Production Amid Strong Demand
- New Process Launch: Intel announced that its 18A manufacturing process has entered risk production, indicating the company's commitment to manufacturing and potentially attracting external customer interest, thereby enhancing its market competitiveness.
- Performance Improvement: Compared to 18A, the 18A-P delivers a 9% performance increase at the same power level or an 18% reduction in power consumption at the same processing speed, which will enhance product market appeal and meet customer demand for high-performance chips.
- Strong Customer Demand: In the first quarter, demand for Intel's central processors surged, particularly from companies offering AI services, leading to sales of chips that were originally slated for write-off, demonstrating strong market demand for its products.
- Revenue Forecast Upgrade: Intel forecasts second-quarter revenue between $13.8 billion and $14.8 billion, exceeding the market estimate of $13.07 billion, reflecting the company's robust performance in the rapidly growing AI market.
See More
U.S. and Iran Sign Memorandum of Understanding
- Diplomatic Breakthrough: The U.S. and Iran signed a 14-point Memorandum of Understanding, establishing a 60-day negotiation window to reach a broader peace agreement, reopening the critical Strait of Hormuz, which could ease tensions in the Middle East and stabilize global energy markets.
- Federal Reserve Outlook: At the first meeting under new Chair Kevin Warsh, the Fed held rates steady but indicated a potential rate hike in 2026, raising the year-end core inflation projection to 3.3%, reflecting a commitment to combating inflation that may influence future monetary policy directions.
- Positive Market Reaction: U.S. stock futures surged following the diplomatic progress, with Nasdaq futures up 1.4% and S&P 500 futures up 0.9%, indicating investor optimism about market prospects, which could stimulate further capital inflows into equities.
- Tech Stock Movements: Apple warned of potential price hikes on some products due to rising AI-driven costs, leading memory stocks like Micron (MU) to rise between 4% and 6%, while Rumble Inc (RUM) surged 17% after finalizing its Northern Data acquisition, highlighting strong market interest in tech stocks.
See More
iShares Semiconductor ETF Shows Strong Performance
- Significant Returns: The iShares Semiconductor ETF has achieved a staggering 108% return in 2026 so far, significantly outperforming the S&P 500's 10%, highlighting its strong performance and appeal in the AI sector.
- Concentrated Portfolio: With only 30 stocks, the ETF's top 10 holdings account for 62.2% of its value, including industry leaders like Micron, AMD, and Nvidia, indicating both concentration and potential risks in the AI chip market.
- Optimistic Earnings Outlook: Micron is expected to report a threefold increase in revenue and a tenfold increase in earnings for its fiscal Q3 2026, driven by strong demand for high-bandwidth memory, further boosting the ETF's overall performance.
- Market Risk Warning: While the iShares Semiconductor ETF boasts a historical compound annual return of 14.9%, concerns about supply-demand imbalances and rising AI costs among customers may lead to decreased future demand, necessitating a long-term investment perspective to navigate potential volatility.
See More
Surging Demand for Data Center Chips
- Demand-Supply Imbalance: The demand for nearly all data center chips and components continues to exceed supply, driving revenue and earnings growth for the iShares Semiconductor ETF, which has soared over 100% in 2026, significantly outperforming the S&P 500's 10% return.
- Top Holdings Performance: The top ten holdings of the iShares Semiconductor ETF account for 62.2% of its portfolio value, with Micron Technology's high-bandwidth memory (HBM) experiencing explosive demand, leading to an expected tripling of revenue and a tenfold increase in earnings for its fiscal Q3 2026.
- Market Competitive Landscape: Intel's central processing units (CPUs) are seeing strong demand due to their advantages in certain AI workloads, reviving its foundry business, while Nvidia's stock, having gained over 12-fold since 2023, still faces robust GPU demand, indicating further upside potential.
- Investment Risk Advisory: Although the iShares Semiconductor ETF has delivered a compound annual return of 14.9% since 2001, the industry's efforts to ramp up production capacity may lead to slower earnings growth in the future, necessitating a long-term investment horizon of five years or more for investors.
See More
Intel and Apple Strike Chip Deal Amid Market Surge
- Stock Surge: Intel's stock rose approximately 9% in premarket trading on Thursday, reflecting positive market sentiment following the announcement of a chip collaboration with Apple, indicating investor confidence in the company's growth prospects.
- Market Recovery: Over the past 12 months, Intel's stock has surged 464%, achieving a market capitalization of $608.7 billion, signaling a recovery as the company regains its footing after years of losing market share.
- Presidential Endorsement: Trump's statement on social media regarding the collaboration emphasizes the importance of domestic chip design and manufacturing, potentially influencing future policies and investment in the semiconductor sector.
- Apple's Modest Gain: While Apple's stock only increased by 0.6% in premarket trading, its partnership with Intel may enhance its competitive edge in chip design, fostering innovation and potentially increasing market share in future products.
See More
Trump Announces Apple to Collaborate with Intel on Domestic Chip Production
- Chip Production Return: Trump announced on social media that Apple will collaborate with Intel to design and produce chips domestically in the U.S., marking a significant return of the semiconductor industry to America, which is expected to enhance domestic manufacturing capabilities and reduce foreign reliance.
- Strategic Investment: The Trump administration plans to invest approximately $10 billion in Intel to expand its semiconductor manufacturing facilities, which will not only bolster Intel's market position but also potentially revitalize the overall U.S. tech industry.
- Growing Market Demand: Intel's next-generation 18A manufacturing process has entered initial production, with robust demand for central processing units supporting its business growth, which is expected to further enhance Intel's competitiveness in the market.
- Apple's Market Impact: The collaboration between Apple and Intel will provide the latter with stable demand, enhancing its reputation in the global consumer electronics market, while also potentially affecting its relationship with TSMC, further driving the development of the U.S. semiconductor industry.
See More
Intel's 18A Manufacturing Process Enters Risk Production Amid Strong Demand
- New Process Launch: Intel announced that its 18A manufacturing process has entered risk production, indicating the company's commitment to manufacturing and potentially attracting external customer interest, thereby enhancing its market competitiveness.
- Performance Improvement: Compared to 18A, the 18A-P delivers a 9% performance increase at the same power level or an 18% reduction in power consumption at the same processing speed, which will enhance product market appeal and meet customer demand for high-performance chips.
- Strong Customer Demand: In the first quarter, demand for Intel's central processors surged, particularly from companies offering AI services, leading to sales of chips that were originally slated for write-off, demonstrating strong market demand for its products.
- Revenue Forecast Upgrade: Intel forecasts second-quarter revenue between $13.8 billion and $14.8 billion, exceeding the market estimate of $13.07 billion, reflecting the company's robust performance in the rapidly growing AI market.
See More
U.S. and Iran Sign Memorandum of Understanding
- Diplomatic Breakthrough: The U.S. and Iran signed a 14-point Memorandum of Understanding, establishing a 60-day negotiation window to reach a broader peace agreement, reopening the critical Strait of Hormuz, which could ease tensions in the Middle East and stabilize global energy markets.
- Federal Reserve Outlook: At the first meeting under new Chair Kevin Warsh, the Fed held rates steady but indicated a potential rate hike in 2026, raising the year-end core inflation projection to 3.3%, reflecting a commitment to combating inflation that may influence future monetary policy directions.
- Positive Market Reaction: U.S. stock futures surged following the diplomatic progress, with Nasdaq futures up 1.4% and S&P 500 futures up 0.9%, indicating investor optimism about market prospects, which could stimulate further capital inflows into equities.
- Tech Stock Movements: Apple warned of potential price hikes on some products due to rising AI-driven costs, leading memory stocks like Micron (MU) to rise between 4% and 6%, while Rumble Inc (RUM) surged 17% after finalizing its Northern Data acquisition, highlighting strong market interest in tech stocks.
See More
iShares Semiconductor ETF Shows Strong Performance
- Significant Returns: The iShares Semiconductor ETF has achieved a staggering 108% return in 2026 so far, significantly outperforming the S&P 500's 10%, highlighting its strong performance and appeal in the AI sector.
- Concentrated Portfolio: With only 30 stocks, the ETF's top 10 holdings account for 62.2% of its value, including industry leaders like Micron, AMD, and Nvidia, indicating both concentration and potential risks in the AI chip market.
- Optimistic Earnings Outlook: Micron is expected to report a threefold increase in revenue and a tenfold increase in earnings for its fiscal Q3 2026, driven by strong demand for high-bandwidth memory, further boosting the ETF's overall performance.
- Market Risk Warning: While the iShares Semiconductor ETF boasts a historical compound annual return of 14.9%, concerns about supply-demand imbalances and rising AI costs among customers may lead to decreased future demand, necessitating a long-term investment perspective to navigate potential volatility.
See More
Surging Demand for Data Center Chips
- Demand-Supply Imbalance: The demand for nearly all data center chips and components continues to exceed supply, driving revenue and earnings growth for the iShares Semiconductor ETF, which has soared over 100% in 2026, significantly outperforming the S&P 500's 10% return.
- Top Holdings Performance: The top ten holdings of the iShares Semiconductor ETF account for 62.2% of its portfolio value, with Micron Technology's high-bandwidth memory (HBM) experiencing explosive demand, leading to an expected tripling of revenue and a tenfold increase in earnings for its fiscal Q3 2026.
- Market Competitive Landscape: Intel's central processing units (CPUs) are seeing strong demand due to their advantages in certain AI workloads, reviving its foundry business, while Nvidia's stock, having gained over 12-fold since 2023, still faces robust GPU demand, indicating further upside potential.
- Investment Risk Advisory: Although the iShares Semiconductor ETF has delivered a compound annual return of 14.9% since 2001, the industry's efforts to ramp up production capacity may lead to slower earnings growth in the future, necessitating a long-term investment horizon of five years or more for investors.
See More
Intel and Apple Strike Chip Deal Amid Market Surge
- Stock Surge: Intel's stock rose approximately 9% in premarket trading on Thursday, reflecting positive market sentiment following the announcement of a chip collaboration with Apple, indicating investor confidence in the company's growth prospects.
- Market Recovery: Over the past 12 months, Intel's stock has surged 464%, achieving a market capitalization of $608.7 billion, signaling a recovery as the company regains its footing after years of losing market share.
- Presidential Endorsement: Trump's statement on social media regarding the collaboration emphasizes the importance of domestic chip design and manufacturing, potentially influencing future policies and investment in the semiconductor sector.
- Apple's Modest Gain: While Apple's stock only increased by 0.6% in premarket trading, its partnership with Intel may enhance its competitive edge in chip design, fostering innovation and potentially increasing market share in future products.
See More
Trump Announces Apple to Collaborate with Intel on Domestic Chip Production
- Chip Production Return: Trump announced on social media that Apple will collaborate with Intel to design and produce chips domestically in the U.S., marking a significant return of the semiconductor industry to America, which is expected to enhance domestic manufacturing capabilities and reduce foreign reliance.
- Strategic Investment: The Trump administration plans to invest approximately $10 billion in Intel to expand its semiconductor manufacturing facilities, which will not only bolster Intel's market position but also potentially revitalize the overall U.S. tech industry.
- Growing Market Demand: Intel's next-generation 18A manufacturing process has entered initial production, with robust demand for central processing units supporting its business growth, which is expected to further enhance Intel's competitiveness in the market.
- Apple's Market Impact: The collaboration between Apple and Intel will provide the latter with stable demand, enhancing its reputation in the global consumer electronics market, while also potentially affecting its relationship with TSMC, further driving the development of the U.S. semiconductor industry.
See More
