TLDR
Intel stock approached $100 as selling pressure continued across semiconductor stocks.
Microsoft’s Maia 300 development renewed attention on custom AI chips and supplier competition.
OpenAI’s reported $50 billion revenue run rate raised fresh questions about AI infrastructure spending.
Intel Foundry revenue grew 31%, although the business still recorded a $2.1 billion operating loss.
Analysts maintain bullish Intel stock targets as investors await the October 29 earnings report.
Intel ( INTC ) stock approached $100 on October 12 as semiconductor shares weakened and investors questioned the cost of expanding AI infrastructure. The retreat followed September’s rally, placing Intel’s recovery under scrutiny as funding worries spread through markets.
Intel Corp., INTC
Intel Stock Faces Another $100 Test
INTC stock traded near $101 on Monday, down more than 3% during the session. Shares had already fallen 5.3% on October 8, extending their retreat from September’s highs. They closed October 9 at $104.70.
Intel CEO Lip-Bu Tan and Broadcom CEO Hock Tan warned Monday that financing could constrain AI expansion. Rising borrowing costs have renewed questions about returns from expensive data centers, even as chip demand remains strong.
Microsoft Pushes Ahead With Custom Chips
Microsoft plans to introduce Maia 300 processors across its cloud operations in 2027. Its custom AI chip strategy targets lower operating costs and reduced reliance on outside suppliers. The chips will support Azure cloud and AI services.
Microsoft says Maia 300 could produce 40% more tokens per megawatt than leading GPU systems. That shift could change supplier demand, although Microsoft has not announced an Intel manufacturing contract for Maia 300.
Meanwhile, Reuters reported that OpenAI’s September annualized revenue approached $50 billion, below an earlier figure near $70 billion. Different treatment of cloud partner sales largely explained the gap. Annualized revenue reflects a projected yearly rate rather than actual full-year sales.
Intel Foundry Still Faces Losses
The broader selloff also reached Nvidia. Its retreat from record highs reflected renewed concerns about AI spending and custom-chip competition.
Intel’s second-quarter results showed foundry revenue rising 31% to $5.8 billion. However, external customers generated only $293 million, and the division posted an operating loss of approximately $2.1 billion. Most foundry sales came from Intel itself.
Terafab and Earnings Remain in Focus
Intel remains involved in Elon Musk’s Terafab project, according to CEO Tan. The project plans to use Intel 14A technology, although Intel’s commercial role and future revenue remain uncertain.
A recent report on AI stocks dominating market returns found that 42 companies drove 67% of S&P 500 gains since January 2024. The figures provide wider context for chip-sector selling.
Tigress Financial maintains a $145 Intel target, while Northland has set $120. Tan purchased 105,263 shares at $95 in August. Intel plans to report third-quarter earnings on October 29, 2026.
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