New York, May 29, 2026, 18:04 (EDT)
- Intel shares were last at $114.68, off roughly 5.1%. Volume was over 191 million shares.
- Wall Street’s major indexes ended at all-time highs as investors pushed into tech and AI-linked stocks.
- MediaTek said it backs Intel’s EMIB advanced packaging tech, but said concerns about valuation remain.
Intel Corp. shares slid roughly 5% on Friday, underperforming the broader market’s record highs. Investors showed little reaction to new signs of demand for the chipmaker’s advanced packaging tech, turning their focus to Intel’s valuation following its rapid AI-driven rally.
The stock was last at $114.68, off $6.16 from its last close. Shares moved in a wide range, hitting $113.67 at the low and $126.49 at the high. More than 191 million shares changed hands.
Strong action for the major indexes as the Dow, S&P 500 and Nasdaq Composite each closed at new records. The S&P 500 gained 0.22% and the Nasdaq was up 0.21%. Tech shares were higher after Dell’s forecast.
Intel didn’t follow the move. The stock’s drop shows the market is beginning to split up chip names linked to artificial intelligence, instead of treating the sector as a single trade.
MediaTek said Friday it backs both TSMC’s CoWoS and Intel’s EMIB packaging. The technologies link chip parts in a single package for faster data and lower power. “We’re one of the few custom silicon providers that support both,” Senior Vice President Vince Hu told reporters in Taipei. Reuters
Intel’s EMIB is being weighed as an option for custom AI chips MediaTek is working on for Google, Reuters said, citing two sources. MediaTek hasn’t said publicly that Google is a customer and didn’t say if it would use EMIB in any Google chips.
Intel is pushing to show it can deliver on its foundry and packaging plan. In April, CEO Lip-Bu Tan said moving from AI training to AI inference and agentic AI was “significantly increasing the need” for Intel’s CPUs and packaging products. First-quarter revenue rose 7% to $13.6 billion. Data Center and AI revenue came in at $5.1 billion, up 22%. Intel Corporation
The drop followed Northland Capital Markets moving Intel to Market Perform earlier this week, flagging a high valuation and the risk that hyperscale cloud players will slow AI infrastructure spending in 2027. Northland said Intel is “making measurable progress in its turnaround,” but kept its price target down, saying the shares remain pricey even if the data center business gets 40% growth in 2027. Investing.com
Micron shares climbed 5.2% Friday, but Nvidia dipped 1.2% and Qualcomm was up 3.2%. D.A. Davidson’s Gil Luria, writing on Micron, said high-bandwidth memory and longer contracts could be changing how memory chips are seen. CPUs, he said, may not be as different as many investors think.
That’s the key issue for Intel. The company says CPUs, foundry work, and packaging can let it grab a larger piece of AI setups, despite Nvidia’s grip on accelerators and TSMC’s steady lead as a contract chipmaker.
AI stocks keep attracting buyers. “There’s definitely euphoric sentiment in the market around AI,” Wells Fargo chief equity strategist Ohsung Kwon told Reuters. He said earnings have been pushing the rally. Reuters
Intel still needs both demand and execution to hit at the same time. If packaging interest from customers like MediaTek turns into orders and server CPU sales hold up, Friday’s selloff could just be a reset on valuation. But a slowdown in hyperscaler spending or ongoing big losses in the foundry unit could send the share price lower. The foundry business lost $2.44 billion in operating income last quarter. Adjusted free cash flow was negative $2.02 billion.
