Intel (INTC) Falls Behind AMD, Yield Acquisition Delayed... Stock Price Faces Crisis of Plummeting to $100

▲ Intel (INTC), Artificial Intelligence (AI)/AI-generated image

Intel (Intel, INTC) surged to $142.37 this month and is now rapidly falling towards the $100 mark. The uncertainty surrounding the 18A process schedule and AMD's overtake in data center revenue have combined, putting investor confidence in Intel's turnaround strategy to the test once again.

According to FX Leaders, a foreign exchange specialized media outlet, on July 8 (local time), Intel's stock price plummeted from its record high of $142.37 recorded this month to around $100, breaking through several technical support levels. There is growing caution that the valuation of the semiconductor company, which surged on expectations for AI infrastructure and next-generation computing demand, has risen too quickly compared to its long-term performance outlook.

Intel's crucial 18A and 18A-P manufacturing processes are also fueling investor anxiety. These two processes are central to Intel's long-term strategy of regaining manufacturing technology leadership and building a highly profitable foundry business to compete with global rivals. However, market reports suggesting that the timeline for achieving commercially competitive yields could be delayed until late 2026 or 2027 have heightened concerns about large-scale production delays and prolonged losses in the foundry division.

Competitor AMD (Advanced Micro Devices, Inc., AMD) has for the first time surpassed Intel in quarterly data center revenue. As data center processors have been a key revenue source for Intel, the weakening of its leadership in the server market has raised questions about the effectiveness of years of restructuring and product investments. Intel has also selectively increased prices for some Xeon processors in response to rising production and supply chain costs.

Large-scale losses in the foundry business and the burden of substantial capital expenditures also remain. While NVIDIA Corporation (NVDA) dominates the AI accelerator market, AMD is expanding its server and high-performance computing businesses, and ARM-based processors are gaining traction among major cloud companies. Intel's stock price has fallen below its 20-day moving average and further dropped below $110; FX Leaders analyzes that if the 50-day moving average is also broken, the $100 mark could be re-opened.

[Article Key Summary]

-Intel's stock price surged to $142.37 this month before plummeting towards the $100 mark, breaking through several technical support levels.

-Concerns have been raised that securing competitive yields for the 18A and 18A-P processes could be delayed until late 2026 or 2027.

-AMD has for the first time surpassed Intel in quarterly data center revenue, and analysis suggests that if the 50-day moving average breaks, the $100 mark could be re-opened.

*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.*