TLDR
- Intel (INTC) shares slid approximately 3% on Thursday, closing at $45.46 with trading volume 41% below normal levels
- Senior executive Kevin O’Buckley departed Intel Foundry Services for a VP role at Qualcomm overseeing global operations
- Intel unveiled a partnership with AI startup SambaNova focused on the SN50 inference chip platform
- Wall Street maintains a consensus “Hold/Reduce” stance with price targets ranging from $45.74 to $48.21
- Q4 results showed EPS of $0.15, exceeding projections, though margins remain negative with subdued forward outlook
Shares of Intel (INTC) retreated nearly 3% during Thursday’s session, settling at $45.46 compared to the prior close of $46.88. Volume registered approximately 71 million shares, marking a 41% decline from typical daily activity.
The downturn was primarily attributed to a significant personnel change: Kevin O’Buckley, who served as senior vice president and general manager of Intel Foundry Services, has exited the company.
O’Buckley is transitioning to Qualcomm, where he’ll serve as vice president overseeing global operations and supply chain management. The lateral move between two semiconductor industry titans triggered negative market sentiment.
Intel responded swiftly with reassurances. The chipmaker emphasized that Intel Foundry continues to be “one of Intel’s highest strategic priorities” and remains under the stewardship of Naga Chandrasekaran, who assumed the top foundry position last year.
Intel issued a public statement expressing gratitude to O’Buckley and extending best wishes. The company has not disclosed specific details surrounding his decision to leave.
Speculation suggests O’Buckley may have previously had a direct reporting relationship with CEO Lip-Bu Tan. Following Intel Foundry’s reorganization, his reporting structure shifted to Chandrasekaran. Whether this organizational change influenced his departure remains unclear.
Intel’s AI Inference Push
The week wasn’t entirely negative for Intel. The company revealed a strategic collaboration with AI chipmaker SambaNova centered on the latter’s SN50 inference chip. Intel is also joining SambaNova’s latest funding round as an investor.
This partnership positions Intel more competitively in the AI inference sector, which industry observers identify as a rapidly expanding, high-margin segment. The initiative demonstrates Intel’s determination to establish a stronger presence in AI hardware beyond its core CPU offerings.
Regarding financial performance, Intel delivered Q4 EPS of $0.15, surpassing the consensus forecast of $0.08. Revenue reached $13.67 billion, exceeding analyst projections of $13.37 billion. However, revenue declined 4.2% compared to the year-ago period.
The forward outlook appears challenging. Intel provided Q1 2026 EPS guidance of zero, while analysts project -$0.11 EPS for the complete fiscal year. The company continues to grapple with negative net margins and negative return on equity.
Nvidia Eyes Intel’s Turf
Additional competitive dynamics are emerging. Nvidia, which invested $5 billion in Intel this past December, is now expanding into the CPU arena — Intel’s traditional stronghold.
As artificial intelligence firms transition from model training to deployment phases, CPU demand is accelerating. Nvidia aims to capture market share in this segment.
Analyst sentiment varies considerably. Tigress Financial maintains a Buy rating with a $66 price objective. Conversely, Wedbush holds a Neutral stance with a $30 target. UBS established a $51 target. MarketBeat’s consensus rating stands at “Reduce” with a $45.74 price target, while TipRanks reports an average of $48.21 based on current ratings.
Insider transactions have shown mixed signals. EVP David Zinsner acquired nearly $250,000 in shares during late January. EVP April Miller divested $981,000 worth of stock in early February.
Institutional ownership accounts for 64.53% of INTC shares. The stock’s 50-day moving average stands at $44.26, while the 200-day moving average is $37.07.
The mean analyst price target of $48.21 suggests approximately 6.67% potential upside from current trading levels.
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