Intel was the biggest loser in a sharp reassessment of how much AI-era growth will actually land on company balance sheets, while Alphabet’s slide and Santander’s bounce showed investors are still pricing stocks on the gap between expectation and execution.
Intel, Alphabet, Santander Move on AI and Brazil
Intel fell for a second straight session, dropping to $58.27 on Wednesday after Monday’s close of $59.97, extending a two-day slump of about 34.9% from Friday’s levels. The move came after Renta 4 Banco said the chipmaker remains exposed to weakening demand for PC processors and may not be capturing as much of the server-AI boom as the market had hoped.
Sentiment Indicators
The latest selloff was backed by heavy trading, with 187.5 million shares changing hands on Wednesday, while technical indicators point to the stock being deeply oversold: its 14-day RSI was 21.6, far below the 50-day moving average of $99.39 and the 200-day average of $87.04. For investors, that combination leaves Intel vulnerable to continued volatility even if some of the panic eases.
Alphabet also remained under pressure after a brutal post-earnings reset, though the selling eased from the previous session. The stock closed at $288.93 on Wednesday, up from Monday’s $278.99 but still about 14.1% below the level before the 12.64% drop that followed the company’s earnings report, as investors weighed the cost of building AI against the risk it reshapes the economics of the ad business.
The move matters because Alphabet sits at the center of the market’s AI trade: if capital spending rises faster than monetization, the valuation premium that has supported mega-cap tech comes under pressure. The stock’s 14-day RSI of 20.9 and its close below both the 50-day and 200-day moving averages suggest the market is still working through that reset.
Santander offered the clearest counterpoint, rebounding to 12.07 euros on Wednesday after slipping to 11.34 euros on Tuesday. Renta 4 said the Spanish lender’s recent weakness stemmed from concern over Brazil, where political and economic uncertainty has weighed on sentiment, but the latest bounce suggests some investors are willing to step back in after the shakeout.
That matters because Santander’s Brazilian exposure can amplify swings in the stock when emerging-market risk appetite deteriorates. Even after the rebound, the bank remains well below its recent 14.64-euro high, showing the market is still repricing overseas earnings risk rather than abandoning the name outright.
The broader narrative is one of expectation adjustment across very different businesses: Intel is being punished for missing the AI narrative, Alphabet for the cost of chasing it, and Santander for regional macro risk. Renta 4’s point is that a correction does not automatically become a lasting downtrend, but in each case investors are demanding proof that future profits will match the story that had been priced in.
| Entity | Gains | Losses |
|---|---|---|
| Intel | ▲bargain hunters if selling exhausts | ▼holders facing valuation reset |
| Alphabet | ▲long-term AI scale if monetization follows | ▼investors fearing margin pressure |
| Santander | ▲dip buyers on Brazil rebound | ▼holders exposed to EM volatility |
| Big Tech index exposure | ▲selective rotation opportunities | ▼crowded AI trades repriced |
