Chip stocks pull back: Here's what you need to know

• Chip stocks are pulling back due to profit-taking after an AI-fueled rally, with the Philadelphia Semiconductor Index 60% above its 200-day moving average.
• Qualcomm, Intel, Onsemi, AMD, Micron, SanDisk, and Seagate are among the worst performers, with some experiencing their worst day in years.
• Analysts remain bullish on the AI story, raising price targets for Nvidia ahead of earnings, citing strong data center demand, despite the current pullback.

Chip stocks are experiencing a pullback after a significant AI-fueled rally, with the Philadelphia Semiconductor Index seeing declines not witnessed since the dot-com era. This profit-taking affects major chipmakers like Intel, Qualcomm, and Micron. Despite the short-term correction, analysts remain bullish on the long-term AI story and data center demand, particularly for Nvidia.