NEW YORK, June 1, 2026, 18:03 EDT
- Intel fell about 4.7% to $109.33 after Nvidia unveiled RTX Spark, a PC chip aimed at AI laptops and desktops.
- Nvidia gained more than 6%, while the Philadelphia SE Semiconductor Index rose 1.1%, showing the selloff was more about Intel’s position than chips broadly.
- Intel pushed its own AI data-center message at Computex, including Xeon 6+ and Crescent Island, but investors marked the stock lower.
Intel Corp shares fell on Monday after Nvidia moved deeper into the personal-computer market with a new AI chip, putting fresh pressure on a business Intel has long dominated.
The stock closed at $109.33, down $5.38, or roughly 4.7%, with volume above 134 million shares. The move came even as U.S. tech shares rose and the Philadelphia SE Semiconductor Index gained 1.1%. Reuters
That split matters now. Investors did not sell the whole chip group. They sold Intel and some other companies most exposed to central processors, the main chips that run computers, after Nvidia said its RTX Spark would put artificial intelligence directly into laptops and desktops.
Nvidia said RTX Spark, built with Microsoft and MediaTek, will appear this fall in systems from Dell, HP, Lenovo, Asus, Microsoft Surface and others. Reuters reported that the chip is designed to run AI agents locally — software that can carry out multi-step tasks with limited human prompting — rather than relying only on cloud data centers. Reuters
“The PC is being reinvented,” Nvidia Chief Executive Jensen Huang said in the company’s release. “This is the new PC.” NVIDIA Investor Relations
Nvidia shares rose 6.3% on the day. AMD, Intel’s closest CPU rival, also slipped, though less sharply, while Qualcomm dropped 8.8%, Reuters reported. The Nasdaq Composite rose 0.42% and the S&P 500 added 0.26%, both closing at records. Reuters
Intel tried to keep attention on its own AI road map. At Computex, the company announced Xeon 6+ processors, new Ethernet products and more details on Crescent Island, a data-center GPU aimed at inference, the stage when an AI model produces answers after it has been trained. Intel said Crescent Island will use LPDDR5x memory, support up to 480 GB of capacity and run in a 350-watt air-cooled PCIe design. Newsroom
Kevork Kechichian, Intel’s data-center group chief, said AI “doesn’t scale as a collection of parts” and that “the CPU remains the control plane” for modern AI infrastructure. That is Intel’s argument in plain terms: even in a GPU-led AI market, servers still need CPUs and networking to coordinate workloads. Newsroom
The market was not ready to give Intel much credit for that on Monday. Barclays analyst Tom O’Malley raised Intel’s price target to $100 from $65 but kept an Equal Weight rating, according to The Fly summary carried by StockAnalysis, a sign that at least some analysts see the rally as already discounting a better turnaround. StockAnalysis
There is a catch to the Nvidia threat. Seaport Research analyst Jay Goldberg wrote that RTX Spark “looks promising technically,” but he does not expect it to show up materially in Nvidia revenue soon. He also said Windows on Arm still trails Windows on x86, the older Intel- and AMD-centered software base, and that broader consumer adoption may take “several generations.” MarketWatch
Still, the stock reaction shows the risk for Intel. If Nvidia and Arm-based designs win more premium AI PC slots, Intel could face margin pressure in a market that has helped fund its factory rebuild and data-center push. The downside case is not that RTX Spark takes the PC market overnight. It is that buyers and developers start treating Intel’s x86 franchise as less central to the next PC cycle.
Intel’s next test is whether it can turn product claims into orders. Crescent Island, Xeon 6+ and its networking push give the company a response in AI infrastructure. Monday’s trading said investors want proof, not just a road map.
