Shares of Intel fell about 7% last week amid broad tech weakness and rising AI competition. The company spent at least $100 million in SambaNova and reported a ZAM prototype under Saimemory.
Intel faces supply constraints and rising component costs for memory chips and substrate wafers. CFO David Zinsner warned of “acute internal supply constraints,” limiting sales and earnings.
Intel‘s foundries posted about $12 billion in losses from 2021 through 2023. Current yields sit near 55-65% versus the industry standard of 80-90%, pressuring margins.
Wall Street consensus rates Intel as “Reduce”, with an average price target of $45.76. It shows five Buy, twenty-five Hold, and six Sell ratings (Ed. note: target below current price).
Shares briefly recovered late last week after the SambaNova investment drew attention. AI demand boosts rivals like Nvidia and suppliers like Amkor Technology, showing intense competition.
