Intel Stock Slumps Amid Foundry Struggles and AI Investment Skepticism
Intel shares extended their decline, dropping 1.3% to $46.18 on thin volume as Wall Street maintains a cautious stance. The 7% weekly slide reflects persistent concerns despite a Q4 earnings beat, with revenue contraction and foundry losses overshadowing results.
The chipmaker's manufacturing yields languish at 55-65%, far below industry standards, while cumulative foundry losses hit $12 billion since 2021. Analysts remain unconvinced by Intel's $100 million AI software bet and AI PC ambitions, with the consensus rating stuck at 'Reduce'.
Market skepticism persists despite Intel's positioning in the AI hardware race. The stock trades above its average price target of $45.74, suggesting further downside risk as investors await tangible execution in both semiconductor processes and AI initiatives.
