Intel's share price falls, and concerns about OEM and AMD deepen

TLDR

Contents

TLDR

SK Hynix's plunge triggers global chip sell-off

JP Morgan's short report puts pressure on the company

Irish investment failed to offset market weakness

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Intel shares fell 4.6% in early trading, to $104.81.

SK Hynix's record 15% decline triggered a global semiconductor sell-off.

JPMorgan Chase has listed Intel as its preferred short target after a strong rise in 2026.

Intel announced an investment of 5 billion euros to expand its manufacturing campus in Ireland.

Market concerns about 18A process yields and AMD's growth performance in the data center space are exerting pressure.

Intel will announce its second-quarter earnings on July 23.

Intel (Nasdaq: INTC) shares fell 4.6% to $104.81 in early trading Monday as semiconductor stocks weakened globally. The decline followed SK Hynix's record plunge and spread to chip markets in Asia, Europe and the United States. Intel shares also face pressure from a bearish report from JPMorgan Chase and persistent manufacturing concerns.

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Intel Corporation (INTC)

SK Hynix's plunge triggers global chip sell-off

SK Hynix shares fell more than 15% in Seoul, setting its largest drop in a single day. A domestic securities firm predicts that its second-quarter operating profit may be about 8% lower than market expectations. The report cited weak average selling price growth for high-bandwidth memory products.

This forecast quickly spread to semiconductor deals outside of South Korea and put pressure on major chip companies. Intel shares fell in pre-market trading and widened their decline after the U.S. market opened. The general decline reflects renewed concerns about the pricing capabilities of the memory and data center chip industries.

South Korea's Kospi index fell about 9% and triggered a temporary circuit breaker mechanism. European chipmakers ASML, ASMI and Infineon fell 1% to 2% in regional trading. Intel's share price weakened as global markets reduced exposure to semiconductor companies.

JPMorgan short report increases pressure on the company

JPMorgan Chase listed Intel as its preferred short target after Intel's share price doubled in 2026. The bank believes that market expectations have reflected the recovery of its OEM business and artificial intelligence business. However, Intel has not yet demonstrated this recovery through its reported financial results.

Intel's share price is still influenced by questions surrounding its advanced 18A manufacturing process. Profitable production yields may not be achieved until late 2026 or 2027. These timetables increase execution risks as Intel expands its contract manufacturing business.

AMD recently reported that it was leading Intel quarterly in data center revenue for the first time, adding to competitive pressure. This shift highlights Intel's need to improve product performance and strive for stronger customer demand. Intel shares are trading below their 52-week high of $142.35 after an earlier rebound.

Irish investment failed to offset market weakness

Intel announced an investment of 5 billion euros to expand its manufacturing campus in Lexlip, Ireland. The project will support the production of data center processors and provide additional OEM manufacturing capacity. However, the announcement did not reverse the decline in Intel's share price in early trading.

Weakness in the broader market added to pressure, with the Nasdaq Composite Index down 1.2% on the day. The S & P 500 fell 0.5%, while the Dow fell less. Intel's share price remains one of the semiconductor stocks affected by market risk aversion.

The next big test for Intel's share price will be the company's second-quarter results announced on July 23. The report will provide the latest data on revenue, profit margins, OEM spending and data center needs. Intel shares closed lower in early trading due to a combination of sector sell-off, analyst pressure and execution concerns.