Intel (INTC) stock has fallen 7% in the past week as leading tech stocks have wavered. There is growing pressure on Intel as the company faces increased competition on the AI front. Besides reigning champion Nvidia, surrounding companies like Amkor Technology are experiencing significant growth due to AI demand, highlighting competitive pressures in the semiconductor space.
Intel shares had a brief recovery late last week after news broke of a major AI investment. Intel had spent at least $100 million in SambaNova, a company that specializes in an AI software platform, according to reports by Wedbush. The move is among the many efforts by Intel to expedite its AI stack and collaborate with the key ecosystem players. Another development has been reported by Intel, the Saimemory project, in which it announced a new ZAM prototype, indicating progress in the area of memory and AI-hardware development, a practical development that is being considered by some investors as a sign that the product roadmap is evolving despite the continued execution issues.
Intel (INTC) itself is dealing with the supply constraints that plague the tech hardware industry right now. Although the company benefits from demand for CPUs, Intel has to pay higher prices for components like memory chips and substrate wafers. Thus, investors have been wary to dive all-in on INTC stock as the top tech stock choice of 2026.
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The Intel stock forecast remains muted among Wall Street analysts. The consensus rating sits at “Reduce” with an average price target of $45.76—below where shares currently trade. The breakdown shows five Buy ratings, twenty-five Hold ratings, and six Sell ratings.
The core Intel stock problems stem from foundry struggles plaguing the company. Intel’s foundries suffered $12 billion in losses from 2021 to 2023, and current yields sit at just 55-65% versus the 80-90% industry standard. CFO David Zinsner admitted on the earnings call that the company doesn’t have the capacity to meet current demand due to what executives described as “acute internal supply constraints,” which will lead to depressed sales and earnings in the coming months.