Chip Stocks Are Bleeding Today. The 2018 and 2022 Selloffs Tell You Exactly What Comes Next

Chip stocks pulled back on May 12 after a parabolic run: the semiconductor ETF and major names saw intraday weakness, prompting traders to revisit the 2018 and 2022 selloffs. The author argues the current slide looks more like valuation-driven rotation within an intact demand cycle rather than a demand/inventory shock. Fundamentals remain strong — Nvidia, AMD and Intel reported large data-center revenue gains and upbeat guidance — but rich valuations (notably AMD) increase sensitivity to sentiment. The takeaway: if upcoming Nvidia and AMD reports show any cracks in data-center growth or hyperscaler capex commentary weakens, the selloff could deepen; otherwise this is likely short-term noise and a potential buying opportunity for traders watching fundamentals.