INTC Stock Drops 9% Before July 23 Earnings: Buy?
💡 Puntos Clave
Intel's 9% drop reflects sector-wide AI demand jitters, but the stock still trades at a premium that assumes foundry success; wait for July 23 proof.
What Happened to Intel Stock?
Intel stock plunged 9% on Wednesday, followed by another 5% drop on Thursday, erasing some of its stunning 270% gain from the first half of 2026. The selloff was triggered by a report that Meta Platforms may sell excess AI computing capacity, which raised doubts about the scarcity of AI computing power and sparked a broad decline in semiconductor stocks.
The broader VanEck Semiconductor ETF (SMH) fell more than 5%, despite just closing its best quarter on record with a 71% gain. Intel shares ended Thursday at $120.35, down from their 52-week high of $142.35 reached just days earlier.
The pullback comes ahead of Intel's second-quarter earnings report scheduled for July 23. The company has been riding a wave of optimism tied to its foundry turnaround, including a preliminary agreement with Apple to manufacture some chips and strategic investments from the U.S. government and Nvidia.
Why This Matters for Investors
Intel's stock price has been driven largely by hopes for its foundry business, which posted external revenue of just $174 million in Q1. The company remains unprofitable on a GAAP basis, with a market capitalization of $638 billion—roughly 12 times its revenue run rate.
The July 23 earnings report will be critical. Investors need to see progress on 18A yields, formal customer commitments, and narrowing foundry losses to justify the current valuation. Without concrete evidence, the stock's lofty price could be vulnerable to further declines.
The broader selloff highlights how quickly sentiment can shift in the AI chip sector. If Meta and other hyperscalers start trimming their AI capacity investments, it could ripple through the entire supply chain, affecting stocks like Nvidia and TSM as well.
Fuente: The Motley Fool
Análisis generado por el modelo cuantitativo de Bobby AI, revisado y editado por nuestro equipo de investigación. Esto no constituye asesoramiento financiero. Investigue por su cuenta antes de tomar decisiones de inversión.
Bobby Insight
Avoid buying Intel stock until after July 23 earnings provide clarity on foundry progress.
The stock is still up over 200% year-to-date and trades at a premium that already prices in a successful turnaround. The July 23 report could either confirm or deflate those expectations, making it a high-risk bet before then.
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