to leave a comment.
▲ Intel (INTC), Bear Market/AI Generated Image
Intel (Intel, INTC) stock plummeted 9.2%, putting its $108 support line to the test. Amid a wave of profit-taking after the stock surged approximately 286% since the beginning of the year, the 18A process yield and foundry losses have once again emerged as Intel's weaknesses.
According to FXLeaders, a US foreign exchange specialized media outlet, on July 8 (local time), Intel's stock also plunged as profit-taking spread across AI semiconductor stocks. Even after Samsung Electronics announced strong preliminary earnings, it failed to meet investor expectations, leading to a sell-off in memory, processor, and AI hardware stocks. Intel quickly reversed direction after exceeding $140 at the end of June.
Market attention focused on Intel's foundry business. Reports that Intel's 18A process might not achieve profitable yields until late 2026 or 2027 pressured investor sentiment. Intel Foundry's external customer revenue in the first quarter only reached $174 million, resulting in a large operating loss.
Intel also confirmed price increases for some consumer and server central processing units. Prices for some consumer semiconductors rose by $30-50, with high-end Xeon processors seeing larger adjustments. While this could help improve profit margins if demand is sustained, concerns about competitiveness with AMD have also grown.
Despite the sharp decline, Wall Street bet on Intel's long-term recovery potential. HSBC doubled Intel's target price from $100 to $200 and maintained its "buy" rating. Bank of America raised its target price to $160, and New Street Research suggested $122.
Technically, $108-$111 is the short-term support zone. If it consistently falls below $108.6, further correction could extend to $100 and the 4-hour 200-day exponential moving average of $91.88. For a rebound, recovery to $121-$125 is necessary, and exceeding $125.7 would set $141.4 as the next upside target. Intel is scheduled to announce its Q2 earnings on July 23.
Intel (INTC) Stock Plunges 9.2% Amid Yield Controversy... Is It Time for the Bubble to Burst?
Intel (Intel, INTC) stock plummeted 9.2%, putting its $108 support line to the test. Amid a wave of profit-taking after the stock surged approximately 286% since the beginning of the year, the 18A process yield and foundry losses have once again emerged as Intel's weaknesses.
According to FXLeaders, a US foreign exchange specialized media outlet, on July 8 (local time), Intel's stock also plunged as profit-taking spread across AI semiconductor stocks. Even after Samsung Electronics announced strong preliminary earnings, it failed to meet investor expectations, leading to a sell-off in memory, processor, and AI hardware stocks. Intel quickly reversed direction after exceeding $140 at the end of June.
Market attention focused on Intel's foundry business. Reports that Intel's 18A process might not achieve profitable yields until late 2026 or 2027 pressured investor sentiment. Intel Foundry's external customer revenue in the first quarter only reached $174 million, resulting in a large operating loss.
Intel also confirmed price increases for some consumer and server central processing units. Prices for some consumer semiconductors rose by $30-50, with high-end Xeon processors seeing larger adjustments. While this could help improve profit margins if demand is sustained, concerns about competitiveness with AMD have also grown.
Despite the sharp decline, Wall Street bet on Intel's long-term recovery potential. HSBC doubled Intel's target price from $100 to $200 and maintained its "buy" rating. Bank of America raised its target price to $160, and New Street Research suggested $122.
Technically, $108-$111 is the short-term support zone. If it consistently falls below $108.6, further correction could extend to $100 and the 4-hour 200-day exponential moving average of $91.88. For a rebound, recovery to $121-$125 is necessary, and exceeding $125.7 would set $141.4 as the next upside target. Intel is scheduled to announce its Q2 earnings on July 23.
[Article Key Summary]
-Intel's stock plummeted 9.2% amid profit-taking in AI semiconductor stocks, with the $108-$111 support zone identified as a key price level.
-Intel Foundry's external customer revenue in Q1 only reached $174 million, and the timeline for achieving profitable yields for the 18A process was highlighted as a major risk.
-HSBC doubled Intel's target price from $100 to $200, and its Q2 earnings announcement is scheduled for July 23.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
-Intel's stock plummeted 9.2% amid profit-taking in AI semiconductor stocks, with the $108-$111 support zone identified as a key price level.
-Intel Foundry's external customer revenue in Q1 only reached $174 million, and the timeline for achieving profitable yields for the 18A process was highlighted as a major risk.
-HSBC doubled Intel's target price from $100 to $200, and its Q2 earnings announcement is scheduled for July 23.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
Newsletter
Get key news delivered to your email every morning
to leave a comment.