NEW YORK, Feb 5, 2026, 10:47 (EST) — Regular session
Intel shares dropped 2.3% to $47.49 in morning trading, erasing gains after earlier hitting $50.82. Roughly 41.6 million shares traded hands.
The dip hits amid Wall Street pressure, as investors recalibrate the AI trade following Alphabet’s warning of a steep rise in capital expenditure and Qualcomm’s disappointing forecast. “The AI trade … is perhaps the extinguisher this year,” said Melissa Brown, managing director of investment decision research at SimCorp. (Reuters)
Intel’s big test is whether its turnaround plan will actually boost revenue, not just generate buzz. CEO Lip-Bu Tan revealed this week that Intel is gearing up to produce graphics processing units, or GPUs—the core chips behind much of AI training and inference. To drive this push, they brought in Qualcomm veteran Eric Demmers to lead the charge. Their target: data centers, where Nvidia still holds sway. “It’s tied in with the data center,” Tan told Reuters, adding, “We’re working with customers.” (Reuters)
Every new data point—be it product launches, manufacturing milestones, or customer “engagements”—has sparked short-lived moves. The stock has swung sharply both ways, with Thursday’s volatility falling right in line.
A batch of U.S. SEC Form 4 filings surfaced this week, drawing attention back to insider moves. Intel’s chief legal officer offloaded 20,000 shares on Feb. 2 at roughly $49.05, following the vesting of performance stock units. Meanwhile, other executives reported share withholdings to cover taxes on equity awards. (Form 4 is the disclosure insiders use to report share transactions.) (Intel Corporation)
Intel’s decline echoed drops in other major chip stocks. AMD slid roughly 4.0%, Nvidia dipped around 1.5%, and Taiwan Semiconductor remained mostly flat.
Intel’s story still hinges on execution risk. Tan’s GPU strategy is in its infancy, and Intel must develop hardware and software tools that customers currently get from well-established competitors. The same challenge applies to its push into contract chipmaking, where interest hasn’t consistently turned into volume orders.
Intel has been weighed down since late January, when it issued a warning on upcoming results and highlighted supply issues. Back then, TD Cowen analysts called the stock’s rally more about “the dream” than actual near-term fundamentals — a phrase investors keep quoting whenever the shares stumble. (Reuters)
Coming up on March 24 in San Jose is Intel Foundry Direct Connect. Investors will be keen to see if Intel provides a sharper timeline for its upcoming manufacturing moves and if it can reveal any outside customers committing substantial volumes. (Intel)
