Intel's Foundry Bet Sits Uneasily Beside a $3.7 Billion Quarterly Loss
10.06.2026 - 17:33:16 | boerse-global.de
The dramatic sell-off that hit semiconductor stocks on Tuesday wiped more than 8% off Intel's share price in intraday trading, dragging the Nasdaq Composite down 1% and exposing the widening gulf between the company's strategic ambitions and its bottom line. At €93.35, the stock has now fallen roughly 15% over the past month, though it still trades nearly 178% higher since the start of the year.
That kind of volatility — the annualized swing is close to 93% — reflects a market that no longer rewards pure AI narrative without proof of profitability. Intel's first-quarter numbers offered plenty of both. Revenue came in at $13.6 billion, up 7% year-on-year, with the data-center and AI segment surging 22% and the foundry business notching 16% growth. Yet the net loss ballooned to $3.7 billion, while GAAP earnings per share came in at a loss of $0.73.
Against that backdrop, the foundry unit — Intel's most closely watched turnaround story — delivered $5.4 billion in revenue but an operating loss of roughly $2.4 billion. The cash position improved to over $17 billion, but debt stood at about $43 billion, leaving the balance sheet stretched as the company pours capital into its 18A manufacturing node.
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That node, however, is what has drawn the attention of two of the biggest names in AI. Google is exploring having Intel manufacture more than three million of its tensor processing units, with production slated to begin in 2028. Nvidia is evaluating the 18A technology for a future processor design, though no firm order has been placed. Both moves are driven by the desire of hyperscalers to diversify supply chains away from an overstretched TSMC.
Intel's progress on 18A has been real: the Core Ultra Series 3 processor is already in volume production on the node, with yields exceeding internal expectations. Meanwhile, demand for Xeon server CPUs outstrips supply. Google expanded its Xeon collaboration in April 2026, using the chips for AI inference and cloud workloads, and Intel's Xeon 6 is deployed inside Nvidia's DGX Rubin NVL8 AI system. Intel is not merely a potential foundry partner — it is already a supplier.
None of that has insulated the stock from the broader reassessment of AI valuations. At €95.54 (or €93.35 after Tuesday's drop), Intel trades roughly 17% below its 52-week high of €114.60 set in May. Technically, the shares still sit more than 19% above their 50-day moving average, offering some cushion. But the message from the market is clear: Intel must convert its high-profile foundry discussions into binding contracts and, more critically, translate surging revenue into sustainable profits. The $3.7 billion quarterly loss shows how far the company still has to go.
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