Intel Plunges 28% as Philadelphia Semiconductor Index Tumbles, Taiwan Stocks Under Pressure

林林靖雯 財經主筆2026-10-31 11:29

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U.S. stocks plunged on October 30, with Intel down 28.58% and the Philadelphia Semiconductor Index down 7.2%. After margin financing in Taiwan dropped by NT$10.4 billion, Taiwan stocks may face further pressure next week. Analysts say AI demand has not reversed, short-term volatility may widen, with market focus on stabilization signals from heavyweight stocks.

Four Major U.S. Indexes Close Lower as Philadelphia Semiconductor Index Tumbles

U.S. tech stocks suffered a sharp selloff on October 30, with all four major indexes closing lower. The Dow Jones Industrial Average fell 572.25 points, or 1.09%, to close at 51770.31; the S&P 500 fell 140.32 points, or 1.82%, to close at 7580.07; the Nasdaq plunged 747.72 points, or 2.86%, to close at 25437, its largest single-day drop since June 5; the Philadelphia Semiconductor Index plunged 829.398 points, or 7.20%, to close at 10688.801. After Taiwan stocks fell sharply last Friday and margin financing dropped by NT$10.4 billion, renewed tech selling in the U.S. market may add pressure to Taiwan stocks at next week's open.

Intel Guidance Misses Expectations, About $140 Billion in Market Value Wiped Out

Intel reported third-quarter results on the 29th. Hit by weak next-quarter financial guidance, continued weakness in the laptop market, and an explosion at its Israel plant affecting capacity, its shares plunged from the previous close of $92.07 to $65.76, a single-day drop of 28.58%, its largest single-day decline since 1974, wiping out about $140 billion in market value in one day. Chip stocks weakened across the board, with AMD down 10.88%, Arm down 9.97%, Nvidia down 4.22%, Broadcom down 5.48%, and TSMC ADR down 5.95%; memory stocks were also sold off, with SanDisk plunging 13.47%, SK Hynix ADR down 7.95%, and Micron down 5.30%, showing selling pressure was no longer limited to a single stock.

Analysts Say AI Demand Has Not Reversed, Short-Term Volatility May Widen

Market concerns over AI investment returns and bubble risks have resurfaced, focusing on when continued capital expenditure expansion by large cloud service providers will translate into revenue, profit and cash flow. SinoPac Securities Investment Advisory General Manager Li Xue-shi noted that Microsoft Azure, Google Cloud and Amazon AWS all maintained strong growth, with combined cloud backlog orders of about $1.8 trillion and computing demand still far exceeding supply. However, quarterly capital expenditure at Microsoft, Alphabet and Amazon all more than doubled year-on-year, while revenue growth was only about 10-20%, and quarterly free cash flow at Alphabet and Meta even turned negative, with the weighted index estimated P/E falling from about 21x at the June peak to just above 16x. The Allianz Taiwan equities team noted that short-term sentiment is overriding fundamentals, with Allianz Taiwan Dam Fund and Allianz Taiwan Technology Fund manager Hsiao Hui-chung and Allianz Taiwan Intelligence Fund manager Chen Si-ming both saying AI demand and Taiwan's supply-chain position remain unchanged, corporate earnings remain medium- to long-term support, and investors can deploy in batches after repeated bottom-testing on pullbacks.

FAQ

Why did Intel plunge 28.58% in a single day?

Intel reported third-quarter results on the 29th. With weak next-quarter financial guidance, plus a sluggish laptop market and an explosion at its Israel plant affecting capacity, its shares fell from $92.07 to $65.76, its largest single-day decline since 1974, wiping out about $140 billion in market value.

What impact will the U.S. selloff have on Taiwan stocks next week?

With the Philadelphia Semiconductor Index plunging 7.20% and TSMC ADR down 5.95%, plus Taiwan margin financing down NT$10.4 billion last Friday, analysts expect valuation-correction pressure on Taiwan stocks to rise next week. Investors should watch for stabilization in semiconductor heavyweights and whether foreign investors continue to trim electronics and AI supply-chain holdings, with short-term volatility likely to widen.

How do analysts view whether AI demand has reversed?

SinoPac Securities Investment Advisory and Allianz Global Investors both note that CSP cloud backlog orders total about $1.8 trillion, with computing demand still exceeding supply, and AI demand has not reversed. What has changed is market patience for investment returns. Pressure on Taiwan's supply chain is reflected first in valuations rather than orders, and with the weighted index P/E down to just above 16x, room for long-term positioning has increased.