Intel’s stunning runup of nearly 180 percent since the start of the year slammed into a wall on Friday, with the stock sliding roughly six percent to close at €93.71. That leaves the chipmaker about 15 percent below the all-time high of €109.88 it notched just last week on May 11. The pullback, triggered by a UBS report flagging weakness in the company’s bread‑and‑butter data‑center business, was compounded by a broader sector sell‑off after Donald Trump’s inconclusive trip to China.
The UBS analysis laid bare a worrisome trend: Intel’s share of the server CPU market slipped to 54.9 percent in the first quarter of 2026, a sequential decline of 3.7 percentage points. On an x86 revenue basis, Intel captured only 53.8 percent, while AMD grabbed 46.2 percent. Even though the overall server CPU market grew 19 percent year‑over‑year, Intel’s own shipments fell one percent. Hyperscalers are funneling more of their capital into AI‑optimized infrastructure, turning increasingly to AMD and Arm‑based alternatives rather than Intel’s offerings.
Compounding the top‑line pressure, Intel’s foundry business — the centerpiece of its turnaround — burned through $2.4 billion in operating losses in the first quarter. The unit’s financial drag is one reason the stock trades at roughly 110 times earnings estimates, a multiple that leaves little room for disappointment. The bank of America remains bearish, warning that operating breakeven in foundry could slip by up to two years. Deutsche Bank, meanwhile, boosted its price target from $45 to $100 in just three weeks but kept a neutral rating.
The splashy foundry deal with Apple is looking less transformative than initial headlines suggested. Analyst Ming‑Chi Kuo estimates that roughly 80 percent of the order volume targets older chip generations for iPhones, with mass production slated for 2027 and 2028. First tests are expected to start later this year. While a successful partnership could eventually generate $10 billion in annual revenue if Intel captures a quarter of Apple’s volumes, that payoff remains years away.
Should investors sell immediately? Or is it worth buying Intel?
On the factory floor, there is some positive news. Production yields on Intel’s new 18A process are running ahead of internal forecasts, and CFO David Zinsner expects to hit year‑end goals by the middle of 2026. In April, Intel also bought back the remaining 49 percent stake in its Irish Fab 34 from Apollo‑managed funds for $14.2 billion, funded with cash and fresh debt, to tighten control over capacity.
Intel’s annual shareholder meeting on May 13 drew a 79.11 percent turnout. All eleven director nominees — CEO Lip‑Bu Tan and the newly independent board chairman Craig H. Barratt among them — were elected. But investors voted down three proposals, including requests for a report on China‑related risks, a human‑rights due‑diligence report, and a measure to separate the CEO and chairman roles.
The stock now faces a crucial week. Tan is scheduled to speak on Tuesday, May 19, at the J.P. Morgan Global Technology Conference, where he is expected to provide concrete updates on the Apple partnership and foundry utilization. Nvidia’s earnings on Wednesday will then set the tone for the entire semiconductor sector. Technically, Friday’s intraday low marks the first support level. How convincingly Tan can articulate progress in the server and foundry segments will determine whether this correction is a healthy pause or the beginning of a deeper pullback.
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