TLDR
- Intel (INTC) shares declined approximately 3% Thursday, closing at $45.46 with trading volume 41% below average
- Kevin O’Buckley, who led Intel Foundry Services as SVP and GM, moved to Qualcomm to lead global operations and supply chain
- The chipmaker unveiled a partnership with AI startup SambaNova focused on the SN50 inference chip
- Wall Street consensus remains cautious with a “Hold/Reduce” rating and price targets ranging from $45.74 to $48.21
- Fourth-quarter earnings showed $0.15 EPS, exceeding forecasts, though margins remain negative with weak outlook ahead
Shares of Intel (INTC) tumbled nearly 3% Thursday, settling at $45.46 after closing Wednesday at $46.88. Volume reached approximately 71 million shares, representing a 41% decline versus typical daily activity.
The decline came primarily in response to a significant personnel change: Kevin O’Buckley, who served as senior vice president and general manager of Intel Foundry Services, has exited the company.
O’Buckley accepted a position with Qualcomm as vice president overseeing global operations and supply chain. The lateral move between two semiconductor industry titans sparked immediate investor concern.
Intel quickly issued reassurances to the market. The company emphasized that Intel Foundry continues as “one of Intel’s highest strategic priorities” and will operate under Naga Chandrasekaran, who assumed the chief foundry position last year.
The company also publicly acknowledged O’Buckley’s contributions and extended best wishes for his future. No official explanation for the departure has been provided.
Industry observers speculate that O’Buckley may have been affected by organizational changes. He previously had direct reporting access to CEO Lip-Bu Tan. Following the Intel Foundry reorganization, his reporting structure shifted to Chandrasekaran. Whether this influenced his decision remains unclear.
Intel’s AI Inference Push
The week delivered positive developments as well. Intel revealed a strategic partnership with AI chip developer SambaNova centered on its latest SN50 inference chip. Intel is also investing in SambaNova’s current funding round.
This collaboration positions Intel more competitively in the AI inference segment, which industry watchers identify as a rapidly expanding, high-margin opportunity. The initiative demonstrates Intel’s determination to establish relevance in AI hardware beyond its core CPU operations.
Regarding financial performance, Intel delivered fourth-quarter EPS of $0.15, surpassing the $0.08 consensus forecast. Revenue reached $13.67 billion, topping analyst expectations of $13.37 billion. However, revenue still declined 4.2% compared to the prior year.
The forward outlook presents challenges. Intel projects Q1 2026 EPS at zero, while analysts forecast -$0.11 EPS for the complete fiscal year. The company continues operating with negative net margins and negative return on equity.
Nvidia Eyes Intel’s Turf
Competitive threats are intensifying. Nvidia, which invested $5 billion in Intel during December, is now expanding into the CPU sector — Intel’s traditional stronghold.
As artificial intelligence firms transition from model training to deployment phases, CPU demand is accelerating. Nvidia aims to capture market share in this space.
Analyst perspectives remain divided. Tigress Financial maintains a Buy rating with a $66 price objective. Conversely, Wedbush holds a Neutral stance with a $30 target. UBS established a $51 target. MarketBeat’s consensus stands at “Reduce” with a $45.74 price target, while TipRanks calculates an average of $48.21 based on recent analyst updates.
Insider transactions show mixed signals. EVP David Zinsner purchased approximately $250,000 in shares during late January. EVP April Miller divested $981,000 worth of stock in early February.
Institutional ownership accounts for 64.53% of INTC shares. The stock’s 50-day moving average stands at $44.26, while the 200-day moving average is $37.07.
The consensus analyst price target of $48.21 suggests potential upside of approximately 6.67% from current trading levels.
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