Intel Shares Drop Over 8% Amid Concerns About Foundry Demand and AI Spending
On July 24, Intel (INTC) shares fell more than 8%, reversing earlier gains after the company's earnings report. Despite strong quarterly results with revenue up 25% year-over-year, investors turned cautious due to concerns about demand for its foundry services and high capital expenditures. The stock closed at $92.32 as trading volume surged above average levels. The broader market saw mixed performance: the S&P 500 rose slightly while the Nasdaq Composite declined by nearly 0.6%. Other semiconductor stocks, including Advanced Micro Devices (AMD) and Texas Instruments (TXN), also fell, reflecting a sector-wide downturn driven in part by investor anxiety over AI spending sustainability. Investors are now watching whether Intel's foundry business can attract more external customers to justify its aggressive investment plans. The stock has risen over 300% this year but faces pressure as market participants seek clarity on how the company will convert high capital outlays into revenue.
Topics: AI spending concerns capital expenditures foundry business demand semiconductors