Intel Shares Slide 7.5% as Foundry Losses Deepen, but Revenue Traction Signals a Turnaround

Intel kicked off the trading week with a sharp 7.5% decline, sending its stock to €104.48 on Monday. The pullback extends a bruising stretch that has wiped 15.4% from the chipmaker's value since the previous Friday, as profit-taking and macro uncertainty collide with the company’s long-term transformation story.

The retreat comes even as Intel’s foundry business shows signs of life. Revenue from manufacturing chips for third parties is gaining momentum, though the unit remains deep in the red. In the first quarter of fiscal 2026, Intel Foundry posted an operating loss of roughly $2.44 billion, with GAAP net losses ballooning more than 350% year over year. The silver lining: rising top-line figures suggest the group is finally winning external customers at scale.

Packaging Technology Could Unlock a Niche Edge

A fresh analysis from Mizuho Bank highlights a potential cost advantage in Intel’s EMIB-T packaging technology versus TSMC’s CoWoS-L solution. If Intel can achieve a 99% yield rate on this process, it could capture 10% to 15% of the advanced packaging segment — a bottleneck market amid surging demand for high-performance AI chips. Such a foothold would bolster Intel’s foundry ambitions and strengthen its pitch to potential clients like Google and Apple.

The company’s US manufacturing footprint is also expanding. Facilities in Oregon, Arizona, New Mexico, and Ohio are being upgraded or built out, driven by the AI boom and a geopolitical push for secure domestic chip supply chains.

Should investors sell immediately? Or is it worth buying Intel?

Mobileye Diversifies into Humanoid Robotics

Adding a new technological dimension, Intel’s autonomous-driving subsidiary Mobileye is acquiring Mentee Robotics for $900 million. The deal aims to create synergies between self-driving vehicle systems and humanoid robotics, with commercial robot solutions expected in the coming years.

Meanwhile, Intel’s partnership pipeline is thickening. The company is collaborating with Alphabet on custom AI chips and is involved in the Terafab project as a manufacturing partner. These alliances reinforce confidence that Intel’s foundry strategy is gaining traction, even as execution risks remain high.

Analyst Views Remain Split

The Street is far from unanimous on Intel’s prospects. Bank of America recently raised its price target, citing expectations of growing market share in server CPUs. New Street Research lifted its target to $122, while Goldman Sachs initiated coverage with a Neutral rating and a $150 target. Wall Street Zen, however, downgraded the stock from Buy to Hold on June 27.

On the technical side, Monday’s slide left the 14-day RSI at 50.1 — dead center on the neutral line. A separate reading from the prior week put the RSI at 57.6, also in neutral territory. The stock had hit a recent high of €123.80 at the end of June before beginning its current correction.

Intel at a turning point? This analysis reveals what investors need to know now.

The 18A Test and the Quarter Ahead

All eyes are on Intel’s upcoming process nodes. The 18A node is now in risk production, and commercial viability will be a key proving ground. The company’s ability to secure further marquee customers and scale production volumes will determine whether the foundry turnaround is real.

Investors will get a clearer picture when Intel reports second-quarter 2026 earnings in July. Consensus estimates call for earnings of €0.19 per share on revenue of $14.4 billion. That print could either validate the recovery narrative or expose lingering cracks in Intel’s transformation.

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