TLDR
- Intel (INTC) stock dropped roughly 3% Thursday, finishing at $45.46 on trading volume 41% lighter than usual
- Senior foundry executive Kevin O’Buckley, SVP and GM of Intel Foundry Services, departed for a VP role at Qualcomm
- Intel announced a strategic collaboration with AI startup SambaNova Systems centered on the SN50 inference processor
- Analyst consensus remains at “Hold/Reduce” with price targets between $45.74 and $48.21
- Fourth quarter results delivered $0.15 EPS, beating estimates, but margins stay negative with conservative guidance ahead
Intel (INTC) stock tumbled approximately 3% Thursday, closing at $45.46 versus the previous session’s $46.88. Trading activity totaled around 71 million shares, marking a 41% decrease from normal volumes.
The stock’s weakness stemmed largely from a notable leadership departure: Kevin O’Buckley, serving as senior vice president and general manager of Intel Foundry Services, has left the semiconductor giant.
O’Buckley is joining Qualcomm, assuming the role of vice president overseeing global operations and supply chain functions. This executive shift between competing chip manufacturers prompted swift investor response.
Intel moved quickly to address investor unease. The company stressed that Intel Foundry remains “one of Intel’s highest strategic priorities” and continues under Naga Chandrasekaran’s direction, who took the helm of foundry operations in the prior year.
The semiconductor manufacturer publicly thanked O’Buckley for his service and wished him success. Specific reasons for his exit have not been made public.
Industry watchers suggest O’Buckley may have previously reported directly to CEO Lip-Bu Tan. After Intel Foundry underwent restructuring, his reporting line changed to Chandrasekaran. Whether this organizational shift played a role in his departure is unknown.
Intel’s AI Inference Push
The week also delivered encouraging news. Intel announced a strategic alliance with AI chip developer SambaNova focused on their newest SN50 inference processor. Intel is additionally participating in SambaNova’s ongoing financing round.
This alliance strengthens Intel’s competitive stance in the AI inference market, which experts view as a fast-growing, high-margin opportunity. The partnership reflects Intel’s deliberate push to gain stronger footing in AI hardware beyond traditional CPU products.
On the financial front, Intel reported fourth quarter EPS of $0.15, beating the consensus estimate of $0.08. Revenue came in at $13.67 billion, surpassing analyst expectations of $13.37 billion. Nevertheless, revenue fell 4.2% year-over-year.
The company’s forward guidance presents obstacles. Intel forecasted Q1 2026 EPS at zero, while analysts project -$0.11 EPS for the full fiscal year. The chipmaker still grapples with negative net margins and negative return on equity.
Nvidia Eyes Intel’s Turf
Further competitive pressures are surfacing. Nvidia, after making a $5 billion investment in Intel last December, is now pushing into the CPU market — Intel’s historical stronghold.
As AI companies shift from model development to production deployment, demand for CPUs is growing. Nvidia seeks to gain ground in this area.
Analyst perspectives vary widely. Tigress Financial carries a Buy rating with a $66 price goal. In contrast, Wedbush maintains a Neutral rating with a $30 target. UBS set a $51 target. MarketBeat’s aggregate consensus sits at “Reduce” with a $45.74 price objective, while TipRanks shows an average of $48.21 across recent analyst assessments.
Insider activity presents a mixed picture. EVP David Zinsner purchased roughly $250,000 in shares during late January. EVP April Miller sold $981,000 worth of shares in early February.
Institutional investors hold 64.53% of INTC shares. The stock’s 50-day moving average is $44.26, with the 200-day moving average at $37.07.
The consensus analyst price objective of $48.21 indicates roughly 6.67% potential appreciation from present price levels.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
