Intel (INTC) Stock Slides Toward $100 as Microsoft Develops Maia 300 AI Chips

TLDR

Table of Contents

Intel shares declined toward $100 amid broad semiconductor sector weakness.
Microsoft’s Maia 300 chip development highlighted ongoing custom processor competition.
OpenAI’s $50 billion annualized revenue figure sparked debate over AI infrastructure investment levels.
Foundry operations increased revenue 31% while maintaining a $2.1 billion operating deficit.
Wall Street analysts preserve optimistic price targets ahead of the October 29 earnings release.

Intel (INTC) shares traded near $100 on October 12 as semiconductor equities retreated and market participants examined the economics of AI infrastructure expansion. The decline followed a September rally, bringing renewed focus to Intel’s turnaround effort amid broader financing concerns.

Intel Corp., INTC

Shares Approach Three-Figure Level

INTC traded around $101 during Monday’s session, declining more than 3% intraday. The stock had already dropped 5.3% on October 8, continuing a pullback from September peak levels. Shares finished October 9 at $104.70.

Intel CEO Lip-Bu Tan and Broadcom CEO Hock Tan both highlighted Monday that capital availability may limit AI expansion plans. Elevated borrowing costs have intensified scrutiny of data center investment returns, despite sustained demand for processing chips.

Cloud Giant Advances In-House Processor Development

Microsoft expects to deploy Maia 300 processors throughout its cloud infrastructure by 2027. The company’s custom AI chip strategy aims to reduce operational expenses and decrease dependence on external chip vendors. These processors will power Azure cloud platforms and artificial intelligence services.

Microsoft estimates Maia 300 could deliver 40% additional tokens per megawatt compared to current GPU-based systems. This development may reshape supplier relationships, though Microsoft has yet to confirm any Intel manufacturing agreement for Maia 300 production.

Separately, Reuters disclosed that OpenAI’s September annualized revenue reached approximately $50 billion, lower than a previously reported $70 billion figure. The variance stems primarily from different accounting methods for cloud partnership revenue. Annualized revenue represents projected yearly performance based on current run rates rather than completed fiscal year results.

Manufacturing Division Continues Operating Deficit

The semiconductor selloff extended to Nvidia as well. The company’s retreat from record highs mirrored growing apprehension about AI capital expenditure and custom-chip alternatives.

Intel’s second-quarter financial data revealed foundry revenue climbing 31% to $5.8 billion. External customer sales totaled just $293 million, however, and the segment recorded roughly $2.1 billion in operating losses. Internal Intel divisions accounted for the majority of foundry sales.

Terafab Partnership and Upcoming Financial Report Draw Attention

Intel maintains participation in Elon Musk’s Terafab initiative, CEO Tan confirmed. The project intends to leverage Intel 14A process technology, though Intel’s specific commercial arrangement and potential revenue contribution remain undefined.

A recent analysis on AI stocks dominating market returns revealed that 42 companies generated 67% of S&P 500 appreciation since January 2024. These statistics offer broader perspective on chip sector declines.

Tigress Financial continues to assign a $145 price target to Intel, while Northland maintains a $120 projection. CEO Tan acquired 105,263 shares at $95 during August. Intel schedules its third-quarter earnings announcement for October 29, 2026.