Intel stock fell on Thursday, putting the shares on track to end a five-session winning streak after gaining more than 20% during the run.
The INTC stock was down around 6% to trade near the $100 mark.
The sharp reversal came as the broader market moved lower amid a renewed surge in oil prices and concerns that higher inflation could keep interest rates elevated.
The Dow Jones Industrial Average fell 195 points, or 0.4%, while the S&P 500 declined 0.6% and the Nasdaq Composite dropped 0.9%.
US West Texas Intermediate crude futures for October delivery climbed above $100 a barrel, while Brent crude for November delivery rose above $105 as the US-Iran conflict stretched into its seventh month.
The rise in energy prices pushed the 10-year Treasury yield above 4.9%, its highest level since November 2023.
Higher rates have put pressure on high-beta technology and semiconductor stocks that have led much of the market’s recent rally.
Intel’s recent rally loses momentum
Intel’s Thursday decline comes after a sharp run higher that has pushed the stock more than 20% higher over the previous five sessions.
One catalyst behind the rally was a report from Taiwan-based technology publication DigiTimes that Intel was considering raising CPU prices by about 10% beginning in early October.
The potential increase would extend a series of price hikes that Intel began at the end of 2025 and comes as the company faces higher supply-chain costs and strong demand for its products.
Thursday’s broader market sell-off has nevertheless highlighted the sensitivity of the recent gains to the macroeconomic backdrop.
Piper sees AI-driven CPU demand
Piper Sandler initiated coverage of Intel on Wednesday with a Neutral rating and a $110 price target.
The firm said Intel is benefiting from the emergence of agentic AI, which is driving demand for its server CPU products.
Piper expects supply to remain constrained, with the supply-demand balance potentially not normalizing until 2029 or 2030.
The firm’s focus, however, is on Intel Foundry and whether the company can catch up in its 14A manufacturing process.
Piper said customer evaluations of Intel’s 14A technology have been surprisingly positive, while management has made progress rebuilding the company’s culture, products and customer trust.
That progress could provide a foundation for Intel’s longer-term foundry ambitions, but Piper believes much of the potential improvement is already reflected in the stock price.
The firm estimates the shares are already pricing in approximately 15% foundry market-share gains.
That would represent a full fab module, Fab-62, and accounts for roughly 45% of Intel’s current share price, according to Piper.
Earlier this week, Northland analyst Gus Richard upgraded Intel to Outperform from Market Perform.
The analyst cited what he described as “material progress” in the company’s turnaround.
He also said Intel could continue benefiting from an ongoing server CPU shortage.
Richard further said Intel’s partnership with Tesla on the Terafab semiconductor initiative could “materially benefit” the company’s foundry business.
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