NEW YORK, June 4, 2026, 09:08 EDT
Intel stock slipped in early premarket hours Thursday, down 3.71% at $108.53, off $4.18, according to premarket data. The company announced a new AI infrastructure deal with Foxconn but the news did little to boost shares as chip stocks slid after Broadcom’s results.
Intel’s 2026 rally is tied to expectations that CPUs, which power PCs and servers, could make a comeback as more AI tasks shift from model training to deployment. Now, that story is running into a market that is offering less slack.
Nasdaq 100 futures slipped 1.16% as of 8:00 a.m. ET, with S&P 500 futures off 0.36%. Broadcom tumbled 15% before the bell. AMD and Qualcomm each lost close to 4% premarket, Reuters said. “Broadcom is finding that meeting and even slightly beating forecasts is not enough,” AJ Bell head of markets Dan Coatsworth said. Reuters
Foxconn said Thursday it will team up with Intel to build next-generation AI infrastructure and intelligent computing platforms. The company said it plans to use Intel’s chip technology along with its own manufacturing and systems capabilities. Foxconn, which is the world’s biggest contract electronics maker, announced the move in a statement.
Foxconn Chairman and CEO Young Liu said the partnership will “combine the strengths of both companies” in computing platforms, systems integration and supply chains.
The companies said they will work together on AI data-center gear, with plans for server racks that use Intel Xeon CPUs and new chips built for AI tasks. They said they are also looking at gear for factories, smart cities, and robots.
Intel positioned itself at Computex as moving into rack-scale AI, talking up server-rack systems instead of just chips. The plan covers systems built for inference — where trained AI models process requests — and for agentic AI, software able to plan and do tasks with less detailed human control. CEO Lip-Bu Tan said Intel is taking AI “from the chip to systems level.” Creative Strategies chief Ben Bajarin said agentic inference could push data centers to a “one-CPU-to-one-GPU” setup. Intel
Bullish investors see this as the case for Intel. Nvidia leads in AI computing with its GPUs, but Intel wants to push Xeon server chips as a backbone for bigger AI stacks. Intel is working with partners including Foxconn and SambaNova.
Broadcom’s timing tripped up the stock on Thursday. The company posted second-quarter revenue of $22.19 billion, short of what Wall Street wanted, and it forecast $16 billion in AI chip sales for the current quarter. That AI number was a touch light, Reuters reported. “A classic case of very high expectations,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown. Bernstein’s Stacy Rasgon flagged that Broadcom shares could “take a pause” over the next few quarters. Reuters
Tech shares have been on a run, with Intel trading like there’s no cushion for a miss. The S&P 500 technology sector now makes up over 39% of the index’s market value, according to Reuters, the highest ever. Intel and AMD are each up more than 160% from the market’s March low.
Intel shares face uncertainty after Foxconn and Intel didn’t say how much the deal is worth, who the customers are, or when products could launch. Investors don’t know when the collaboration will lead to sales. If AI demand slows, or cloud buyers keep favoring Nvidia, Broadcom, AMD, or in-house chips, Intel’s gains could slip.
Thursday, traders will be watching to see if buyers see the decline as another round of profit-taking across chips, or if they take it as a hit to Intel’s push in AI. The more important sign will be hard order flow, not what’s said on stage.
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