Intel Shares Face Pressure Following Nvidia’s Manufacturing Decision

Intel US4581401001

Intel's stock encountered a setback at the close of the week, cooling investor enthusiasm that had been building on rumors of major future contracts. The shift in sentiment was triggered by a key decision from Nvidia, which has cast doubt on the near-term progress of Intel's foundry ambitions.

The graphics chip leader, Nvidia, has decided against utilizing Intel's current-generation 18A manufacturing process following initial testing. This move presents a challenge to Intel's goal of rapidly capturing market share from the dominant foundry player, TSMC. The development followed mid-week reports that had fueled optimism, suggesting Nvidia and Apple were in advanced talks to use Intel's future 14A node, scheduled for 2028.

Despite this rejection from an external customer, Intel confirmed that its own production using the 18A process is operational and will be used for its upcoming "Panther Lake" processors.

Quarterly Results Show a Mixed Picture

Investors are also digesting the company's latest financial figures. Intel reported better-than-expected results for the fourth quarter of 2025, with revenue reaching $13.67 billion and earnings per share coming in at $0.15, surpassing Wall Street forecasts.

The guidance for the first quarter of 2026, however, was more cautious. Management projected a break-even result of $0.00 per share, citing persistent supply constraints. Reflecting the week's mixed news, Intel's stock closed Friday's trading session at $47.31, marking a single-day decline of 1.74%.

Divergent Analyst Views and Insider Confidence

Market experts remain divided on the equity's outlook. Tigress Financial raised its price target to $66, citing growth in the data center segment driven by artificial intelligence. In contrast, DZ Bank maintained its sell recommendation, even as it increased its fair value estimate to $36.

A vote of confidence emerged from within the company itself. Executive Vice President David Zinsner purchased shares at the current price level. The stock's trajectory is now seen as heavily dependent on whether the supply chain relief management anticipates for the second quarter materializes as planned.