From 24/7 Wall St. · David Moadel · · 1m 10s
Chip Stocks Fall as Supply Warning Deepens AI Selloff
Lam Research supply warning sparks 8% drops for Marvell and AMD, 7% for Intel as AI chip stocks fall.
In brief
Lam Research supply warning sparks 8% drops for Marvell and AMD, 7% for Intel as AI chip stocks fall. Lam Research's supply chain warning caused Marvell and AMD stocks to drop 8% and Intel to drop 7% in morning trading. Originally reported by 24/7 Wall St..
Lam Research Supply Warning Sparks Chip Selloff
Lam Research's CFO warned of near-term supply chain constraints affecting chip production in October 2026.
“this revenue guide would have been a bit higher if not for some near-term supply chain constraints that we are actively managing”
Marvell and AMD Drop 8% in Morning Trading
Marvell Technology stock fell 8% to $224.64 and AMD stock dropped 8% to $509.79 in morning trading on October 22, 2026.
Intel Drops 7% Amid Supply Concerns
Intel stock fell 7% to $86.64, trailing Marvell and AMD while still falling faster than the semiconductor fund.
Semiconductor ETF Slips 6%
The iShares Semiconductor ETF dropped 6% in morning trading on October 22, 2026.
Lam Research CEO Notes Longer Runway
Lam Research CEO said clean room space availability and supply chain constraints will limit chip makers' ability to meet end demand through 2027.
“As we move into calendar year 2027, we see clean room space availability and supply chain constraints for certain components continuing to limit chip makers and equipment companies’ ability to fully meet end demand.”
Market Reaction to Supply Constraints
Investors are concerned about supply limits affecting chip sales and are holding positions modestly until the bottleneck resolves.
The big picture
Lam Research's supply chain warning caused Marvell and AMD stocks to drop 8% and Intel to drop 7% in morning trading.
