Intel stock slides 10% after record rally, options signal 8% swing next week

Intel Corp. shares fell about 10% this week, bringing a record-breaking rally to a halt as a broad tech selloff dragged the chipmaker lower alongside peers including Broadcom Inc. and Advanced Micro Devices Inc.

The decline has pulled Intel's stock closer to Wall Street's consensus target of about $95, according to Visible Alpha data. Of seven analysts tracked, three rate the stock a buy, three are neutral and one recommends selling. Deutsche Bank, UBS and Bank of America have expressed concern that Intel's rapid ascent — up nearly 180% year-to-date and more than 400% over the past 12 months — may have outpaced its fundamentals.

Based on current options pricing, traders anticipate the stock could swing as much as 8% in either direction by the end of next week. From Friday afternoon's level near $104, that implies a rally back above $113 or a further decline to as low as $96, which would erase more of the year's gains.

The pullback comes as the broader semiconductor complex sold off after Broadcom's disappointing AI chip guidance dragged the sector lower. Intel, which started 2026 near $37 and surged to a record $132.45 in May on optimism about its foundry turnaround and government backing, had little cushion when sentiment turned. The stock remains one of the top gainers in the S&P 500 this year, but the gap between its current price and Wall Street's $95 consensus target highlights the tension between the turnaround narrative and unproven economics.

Intel's foundry business, central to the bull case, posted an operating loss of $2.4 billion on $5.4 billion in revenue in the first quarter. Reports that the company could be close to securing Apple Inc. as a foundry customer have fueled optimism, though no deal has been confirmed. The stock's enterprise value of about $568 billion represents 42 times trailing EBITDA, far above Taiwan Semiconductor Manufacturing Co.'s multiple of 24.

The S&P 500 fell 2.6% for the week, snapping a nine-week winning streak, while the Nasdaq Composite dropped 4.7%. The 10-year U.S. Treasury yield rose to 4.55% after a stronger-than-expected jobs report showed 172,000 jobs added in May, more than double the 80,000 consensus estimate, reducing expectations for Federal Reserve rate cuts.

This article is for informational purposes only and does not constitute investment advice.