NEW YORK, Feb 17, 2026, 11:10 EST — Regular session
- Intel slipped roughly 1% by mid-morning as chip stocks across the board lost ground.
- The sector slipped, with investors reacting to the latest headlines about Chinese AI and potential disruption risks.
- Traders are eyeing Wednesday’s Fed minutes, then shifting to Friday’s U.S. PCE inflation readout.
Intel shares slipped 1.4% to $46.15 as of 10:55 a.m. EST on Tuesday, after earlier hitting a session low of $45.28. Ongoing softness in major tech names weighed on chip stocks.
Investors kept selling, spooked by concerns that rapid-fire advances in AI could disrupt the tech sector. Intel and Advanced Micro Devices both lost ground. The Philadelphia SE Semiconductor index, which tracks U.S.-listed chipmakers, also fell. Alibaba’s rollout of its new Qwen 3.5 AI model only heightened jitters. “One of the variables weighing on markets today,” said Stash Graham, managing director and CIO at Graham Capital Wealth Management. (Reuters)
Risk appetite looked similar beyond U.S. borders. “The markets are taking each sector one-by-one and stress testing their business models,” said Axel Botte, head of market strategy at Ostrum Asset Management. (Reuters)
Friday brings another test for traders: the government’s latest personal consumption expenditures (PCE) price index lands then. The Fed watches this inflation gauge most closely, and it’s a number that can jolt rate-cut bets—and growth stock prices. (Bureau of Economic Analysis)
Chicago Fed President Austan Goolsbee floated the possibility of “several more” rate cuts in 2026, contingent on inflation returning to a 2% trajectory. “We’ve got to see it” in the numbers first, he cautioned. Investors will be watching for more cues when the Fed’s Jan. 27-28 meeting minutes land on Wednesday. (Reuters)
Intel’s Tuesday action throws the spotlight back on its high-stakes bet: can hefty spending actually yield more reliable supply and a bigger slice of the data-center chip market? The company is also angling for a stronger foothold in AI-driven demand. Just last month, Intel acknowledged it couldn’t keep up with orders for server chips powering AI data centers, and its first-quarter sales and profit outlook came in under Wall Street’s forecasts. (Reuters)
Investors have treated the stock as a proxy for the broader AI spending cycle, hammering it at the first hint of a turn—or if Intel stumbles on execution within that cycle.
Intel’s day-to-day moves have mostly tracked swings in risk appetite, while peers with a more direct AI accelerator story have dominated the narrative for the group.
Another upside inflation surprise—or any hawkish notes lurking in the Fed minutes—could easily drive chip stocks lower through the end of the month. Calmer numbers might bring buyers off the sidelines, though demand has been anything but steady lately.
Traders are watching three dates: Feb. 18 brings the Fed minutes; the PCE inflation numbers follow on Feb. 20; then Nvidia is set to report quarterly results Feb. 25. Chip-stock bets may hinge on what plays out. (Federal Reserve)
