"Both Intel and AMD stocks surged last Wednesday after reports emerged that they plan to raise CPU prices by 10% to 15% due to AI-driven demand and tightening supply chains. However, today, that enthusiasm is reversing as geopolitical instability, macro headwinds, and profit-taking weigh on the broader semiconductor sector."
"Intel's upcoming launch of the Core Ultra Series 3 commercial PCs is a crucial moment for CEO Lip-Bu Tan's foundry-led turnaround strategy. The market appears to be in 'sell the news' mode heading into this launch, despite the potential for growth."
"Intel's Q4 2025 earnings showed revenue of $13.67 billion and non-GAAP EPS of $0.15, both modest beats. The Datacenter and AI Group grew 15% sequentially, driven by demand for Xeon 6 processors and custom ASICs, indicating a bright spot amid challenges."
"Despite a $2.51 billion operating loss in its foundry unit, Intel stock is up 81% over the past year. Analysts maintain a 'Reduce' consensus on INTC stock, reflecting skepticism about the pace of the foundry recovery."
Intel shares fell 5% to around $41, while AMD dropped 3% to approximately $196. This decline follows a surge after news of planned CPU price hikes due to AI demand. Geopolitical instability and profit-taking are impacting the semiconductor sector, with the iShares Semiconductor ETF down 4%. Intel's upcoming launch of the Core Ultra Series 3 PCs is significant for its turnaround strategy, despite a $2.51 billion loss in its foundry unit. Analysts remain skeptical about the foundry recovery, maintaining a 'Reduce' consensus on Intel stock.
Read at 24/7 Wall St.
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