Trump’s Stake Critique and Server Share Losses Dent Intel’s Stellar Run

Intel’s relentless rally hit a fresh patch of turbulence this week, with a double dose of pressure arriving from both Washington and Wall Street. President Donald Trump’s public criticism of the government’s stake in the chipmaker coincided with a UBS analysis flagging renewed market-share erosion in the server business, leaving investors to weigh the sustainability of a turnaround that has already delivered gains of nearly 180% this year.

The stock has been on a tear since plumbing depths of around €17 last summer. At Monday’s opening, shares changed hands at €94.04, a modest rebound from Friday’s close of €93.71, yet the weekly damage remains stark: a 14.42% decline over the past five sessions. Over the trailing 30 days, however, Intel still sports a 61.36% advance, and the year-to-date surge stands at 179.84%.

Server Market Share: The Achilles Heel

The UBS report zeroes in on a vulnerability that has haunted Intel for years — the steady loss of data-center turf to AMD and ARM-based chip designers. While the company’s turnaround narrative has powered the recent rally, the fresh warning that competitive pressure in the lucrative server segment shows no sign of abating has prompted some institutional investors to lock in profits. The sector’s broader rotation, fueled by rising bond yields and a Nasdaq 100 that has lost some of its edge, only amplified the selling pressure on high-flying semiconductor names.

Yet the quarterly figures that underpin the bull case remain solid. Intel posted revenue of $13.58 billion for the most recent quarter, comfortably above the $12.32 billion the market had penciled in. Earnings per share came in at $0.29 against a consensus forecast of just $0.01 — a beat that gives CEO Lip-Bu Tan breathing room as he pushes ahead with the restructuring.

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Foundry Progress and the 18A Milestone

The operational highlight continues to be the next-generation “Intel 18A” manufacturing process. Management reports that yields are running ahead of internal projections, and the company now expects to hit its year-end production targets as early as mid-2026. That accelerated ramp, however, carries a cost. Intel has guided for second-quarter revenue as high as $14.8 billion, but gross margins are forecast to slide to around 39% as startup expenses for the new chip-generation bite.

A preliminary production agreement with Apple for domestically made chips has been a key catalyst behind the stock’s re-rating, alongside a strategic equity injection from Nvidia. These deals, together with a reference-story partnership with McLaren Racing — where Intel supplies Xeon and Core Ultra processors for aerodynamics and race strategy — have bolstered confidence that the foundry pivot is gaining traction.

Trump Takes Aim

President Trump’s critique, delivered in an interview with Fortune magazine, adds a political dimension to the stock’s recent wobble. The U.S. government acquired a stake in Intel last August, paying $8.9 billion for shares at $20.47 apiece. Trump argued that Washington should have demanded a larger allocation, a view that looks prescient given the current price of around €93.48. The remark triggered a slight dip ahead of Monday’s U.S. open, though the broader market impact remained contained.

Mixed Signals from Big Money and Insiders

Institutional ownership remains robust at 64.53% of shares outstanding. iA Global Asset Management, for instance, boosted its Intel position by 17% to 593,043 shares, signaling that some long-term players are doubling down. On the insider side, Executive Vice President April Miller Boise sold roughly 40,000 shares at an average price near $100 in early May, a move that may reflect personal portfolio management rather than any negative view on the outlook.

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Several analysts have responded to the recent run by downgrading the stock to “Hold,” citing a lack of safety margin after the steep ascent. The market is now looking ahead to two key events: Lip-Bu Tan’s appearance at the J.P. Morgan Technology Conference on Tuesday at 9:55 a.m. California time, where investors will press for clarity on how the 18A ramp costs will affect long-term profitability targets; and his keynote speech at Computex on June 2, where the CEO will need to convince the Street that improved manufacturing processes and AI-chip ambitions can translate into sustained market-share gains.

For the second quarter, Intel has guided for earnings per share of roughly $0.20. Whether that guidance proves conservative or is undermined by the server headwinds will determine if the rally can regain its footing — or if the past week’s slide is the start of a deeper correction.

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