What Sparked the Recent Drop in Intel’s Stock
Intel shares slid in recent trading after reports surfaced that rival chipmaker Nvidia decided not to proceed with testing Intel’s advanced 18A manufacturing process. That decision came after initial trials earlier this year, and the market reacted negatively as it raises questions about demand for Intel’s foundry business — a key part of its strategy to attract external customers. Reuters and market trackers indicate Intel stock declined roughly 2–3 % following this news, while Nvidia shares were mostly steady.
The 18A node was seen as a potential way for Intel to tap into the booming AI chip market — hence the sell-off signals investor skepticism about Intel’s ability to compete for high-profile customers.
Why This Matters
Intel has been striving to reinvent itself after years of falling behind rivals in advanced chip manufacturing. Part of that effort has included courting major AI and GPU players to use its fabs. A stumble in these efforts — such as Nvidia’s reluctance to adopt the 18A process — feeds concerns around Intel’s manufacturing competitiveness.
Recent Strategic Context
Earlier this year, Nvidia made a significant move by investing $5 billion into Intel as part of a broader partnership to co-develop certain CPU and data-center products. That news temporarily boosted Intel’s stock and was seen as a possible turning point for its future.
Moreover, U.S. regulators have cleared Nvidia’s investment in Intel, easing antitrust worries about the arrangement and helping stabilize some investor sentiment around the collaboration.
Market & Analyst Opinions
Intel’s recent volatility has drawn mixed reactions from analysts. While some see declines linked to specific production setbacks and competitive pressures, others have highlighted previously strong rallies or the stock’s recovery on big-picture technology trends. For instance, a past surge in Intel shares followed news of Nvidia’s backing — its largest jump since the 1980s — even as some analysts later urged caution on valuation.
Inside Intel, leadership decisions and performance have also been debated among employees and investors, particularly relating to technical strategy and execution under new management — a factor that can influence confidence in the company’s turnaround plan.
- Intel stock recently fell after reports that Nvidia halted tests of Intel’s 18A manufacturing process — dampening optimism about Intel’s foundry business attracting major customers like Nvidia.
- The stock had previously received a boost when Nvidia invested $5 billion in Intel and regulators cleared that deal.
- Investor sentiment remains sensitive to execution risk in Intel’s manufacturing strategy and competitive pressures in the AI chip sector.
