Intel (INTC) Stock Drops 11% to $99 Despite Strong AI Growth and Q1 Beat
On Monday, Intel stock (INTC) failed to stop its previous many-day losing streak and remain under pressure around the $99 level.
Quick overview
- Intel stock (INTC) continues to struggle, trading around $99.17 with over 11 percent losses on the day due to industry-wide weakness and competitive pressures.
- Despite a strong Q1 report showing $13.6 billion in sales and significant growth in its Data Center and AI business, the company reported a loss of $0.73 per share after extra costs.
- Intel's new AI technologies and partnerships with companies like Foxconn and Hitachi may help improve its stock performance moving forward.
- Experts currently rate the stock as a Hold, with price targets ranging from $73 to $150, reflecting mixed expectations for its future performance.
On Monday, Intel stock (INTC) failed to stop its previous many-day losing streak and remain under pressure around the $99 level. At the time we are writing this article, the INTC is trading at $99.17, showing more than 11 percent losses on the day. Despite the good AI demand and new partnership, the stock is showing poor performance and this is due to the weakness in the whole chip industry. Moreover, the ongoing worries about competition and already high stock price is also something that puts pressure on the stock price.
Good Results In First Quarter
On the other hand, the company’s first three months of 2026 (Q1 report) also show positive results. According to the report, the company generated $13.6 billion in sales during the quarter, which was much better than people’s expectations and 7 percent higher than the results of the previous year. The report revealed that its important Data Center and AI business showed significant growth and increased by 22 percent to reach $5.1 billion in sales alone. During the same period, the Client Computing segment (laptops and PCs) generated approximately $7.7 billion in sales, which clearly shows that the company’s position is strong at this time.
But the company reported a loss of $0.73 per share after some extra costs for changes. Without those extra costs, it earned $0.29 per share, which was good. Looking at the overall situation, the company expects that in its next quarter it will generate approximately $13.8 billion to $14.8 billion in sales, which gives investors even more confidence.
Company Shows New AI Tech
In addition, another thing that can help this company’s stock recover from its losses is its new AI tools, which it recently showcased at the big Computex show that took place in late May and early June. At this show, the company talked about new powerful chips that it is developing for large data centers using its 18A technology. During this time, the company’s new CEO, Lip-Bu Tan, also said that this year will be considered very important for the company.
However, the reason for this is that the company has entered into several partnerships this year. One of these partnerships is with Foxconn, in which they will help build its AI systems. In addition, the company has also partnered with Hitachi, where it works on smart machines, computers, and more. They also work with other companies like Siemens for different uses.
Experts Give Hold Rating Now
Considering its new partnerships, good earnings report, and strong AI demand, many experts have given this stock a Hold rating for now. In addition, the stock’s average price target for next year is around $73 to $98. Some experts believe that this stock can go up to $150, while others expect it to move lower. Whatever the case, people seem happy with the company’s performance because of AI growth and better chip manufacturing in America.
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