Intel Stock in a Watchful Phase as Foundry Push Faced with Scrutiny

Intel closed the week in positive terrain, yet nerves on Wall Street are growing about the company?s pivot to contract manufacturing. The key question remains whether the move to becoming a full-fledged foundry will prove profitable in practice, not merely on paper.

Key takeaways at a glance:
- DA Davidson starts coverage with a Neutral stance
- Chip sales in 2025, per SIA, around $800 billion
- 2026 outlook from SIA points toward roughly $1 trillion
- AMD captured a record share of server-processor revenue in Q4 2025
- Supply-chain bottlenecks recently clouded the outlook for Q1

New Analyst Perspective: ?Neutral? and a Revenue of Questions
DA Davidson?s Gil Luria added Intel to its coverage on Friday, granting a Neutral rating. The core hesitation centers on Intel?s strategic shift toward a dedicated foundry business?manufacturing for third-party clients?rather than sticking to its legacy model. In the view of the analyst, the market will pay up for visible execution, not just plans on a slide deck. The stock had already shown notable volatility at the end of January 2026, pressured by supply-chain problems and a softer-than-expected first-quarter outlook that unsettled investors.

A favorable but fiercely contested landscape for semiconductors
The backdrop for chips remains supportive on balance. The Semiconductor Industry Association puts 2025 global chip sales at roughly $800 billion, with the sector expected to grow toward about $1 trillion in 2026. The drivers are dominated by heavy investment from big tech names into AI infrastructure. Nevertheless, market share remains fiercely contested. In Q4 2025, AMD achieved a record-high share of revenue within the server-processor segment, underscoring the competitive pressure Intel faces even when the overall market remains healthy. For Intel, that dynamic means the bar for a clean turnaround is set higher, even in a robust market.

What matters for the stock right now
Despite a clear rebound in the stock over the past year, Intel remains exposed to execution risk. The latest reactions to ongoing supply-chain constraints illustrate how quickly expectations can shift. The critical test for Intel will be to demonstrate tangible progress on its Foundry strategy in coming quarters while continuing to address operational bottlenecks that have weighed on guidance and sentiment.