What Happened?

Shares of computer processor maker Intel (NASDAQ: INTC) fell 5.1% in the morning session after reports emerged that the company was considering a significant shift away from its 18A chip-making process. The potential move away from marketing its 18A process to new foundry customers signaled a major pivot for the chipmaker. This technology, which has incurred billions in development costs, was intended to make Intel competitive with industry leader TSMC. 

A shift to the next-generation 14A process could result in a significant write-off, potentially costing hundreds of millions or even billions of dollars. This news created uncertainty around Intel's ambitious plan to become a major contract chip manufacturer for other companies.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Intel? Access our full analysis report here, it’s free.

What The Market Is Telling Us

Intel’s shares are extremely volatile and have had 36 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Intel is up 9.1% since the beginning of the year, but at $22.06 per share, it is still trading 36.7% below its 52-week high of $34.87 from July 2024. Investors who bought $1,000 worth of Intel’s shares 5 years ago would now be looking at an investment worth $373.23.

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