Intel and Qualcomm shares fell sharply on Thursday as investors pulled back from two of the biggest beneficiaries of the artificial intelligence-driven semiconductor rally, while analysts warned that competitive pressures remain intense despite surging enthusiasm around AI infrastructure spending. Intel shares (INTC) declined nearly 3%, marking a third consecutive day of losses after a rally that has seen the stock more than triple so far this year.
INTC surged after reports of a preliminary Apple chip deal, adding to gains fueled by AI growth and strong foundry demand.
Intel (INTC) has seen its foundry segment finally gain momentum after enduring years of challenges. The company's 18A process node, which is its most sophisticated to date, is now in commercial production.
On March 21, 2026, at the Seaholm Power Plant in Austin, Elon Musk unveiled “the most epic chip-building exercise in history”: Terafab, a joint venture between Tesla (NASDAQ:TSLA | TSLA Price Prediction), SpaceX, and xAI, with Intel (NASDAQ:INTC) as foundational manufacturing partner.
Intel shares have surged by +200% since late March on investor excitement about the CPU Renaissance and potential customers for its foundry business. The rally, which has pushed Intel past its dot-com era highs, prices in an unconfirmed preliminary Apple foundry agreement reported by the WSJ last week. Intel is becoming increasingly risky from a fundamental perspective as the stock and valuation have now baked in all potential positives, leaving no room for bad news.
Intel (NASDAQ:INTC | INTC Price Prediction) shares have gone vertical.
MPWR edges INTC in this AI chip showdown, despite pricier valuation, on a stronger growth outlook and power solutions demand.
The semiconductor sector has entered territory the Wall Street Journal is now calling “the great chip stock melt-up of 2026.
Intel (NASDAQ:INTC | INTC Price Prediction) is the stock of the moment, riding a 250.79% year-to-date melt-up and dominating every chip headline.
The old market saying tells investors to “Sell in May and go away,” parking proceeds until the historically stronger fall months.
Intel's (NASDAQ: INTC) remarkable stock market performance that took the equity 459.95% higher from $22.56 one year ago to $126.33 at press time on May 13 appears to have done little to turn some prominent analysts bullish.
As the artificial intelligence (AI) revolution enters its next critical phase, the Founder of Niles Investment Management, Dan Niles, is looking past current market darlings, betting that Intel Corp. (NASDAQ:INTC) is poised for a massive hardware resurgence.