Intel (INTC) Shares Slide 3% Following Foundry Leader’s Move to Qualcomm

TLDR

• Intel (INTC) declined approximately 3% on Thursday, closing at $45.46 with volume 41% below average
• Kevin O’Buckley, the SVP and general manager of Intel Foundry Services, departed to join Qualcomm as VP of global operations and supply chain
• The company revealed a partnership with AI chip startup SambaNova focused on the SN50 inference chip
• Wall Street consensus remains at “Hold/Reduce” with price targets ranging from $45.74 to $48.21
• Q4 earnings showed EPS of $0.15, surpassing expectations, though margins remain negative with cautious forward outlook

Shares of Intel (INTC) slipped nearly 3% during Thursday’s session, settling at $45.46 compared to the prior close of $46.88. Volume registered approximately 71 million shares, representing a 41% decline from typical daily levels.

Intel Corporation, INTC

The decline was primarily attributed to a significant personnel change: Kevin O’Buckley, who served as senior vice president and general manager of Intel Foundry Services, has exited the company.

O’Buckley is transitioning to Qualcomm, where he’ll assume the position of vice president of global operations and supply chain. The lateral move between two semiconductor powerhouses triggered immediate market reaction.

The company publicly acknowledged O’Buckley’s contributions and extended best wishes. Official reasons behind his departure remain undisclosed.

Speculation suggests O’Buckley may have previously held a direct reporting relationship with CEO Lip-Bu Tan. Following Intel Foundry’s reorganization, his reporting structure shifted to Chandrasekaran. Whether this organizational change influenced his decision remains unclear.

Intel’s AI Inference Push

The week brought positive developments as well. Intel unveiled a partnership with AI chip startup SambaNova centered on the company’s latest SN50 inference chip. Intel is also contributing to SambaNova’s current funding round.

This collaboration positions Intel more competitively in the AI inference space, which industry analysts identify as a rapidly expanding, higher-margin segment. The partnership demonstrates Intel’s strategic efforts to establish stronger positioning in AI hardware beyond its core CPU operations.

Regarding financial performance, Intel delivered Q4 EPS of $0.15, exceeding the consensus forecast of $0.08. Revenue reached $13.67 billion, topping analyst projections of $13.37 billion. However, revenue declined 4.2% compared to the previous year.

The forward outlook presents challenges. Intel projected Q1 2026 EPS at zero, while analysts anticipate -$0.11 EPS for the complete fiscal year. The company continues facing negative net margins and negative return on equity.

Nvidia Eyes Intel’s Turf

Additional competitive dynamics are emerging. Nvidia, following its $5 billion Intel investment in December, is now advancing into the CPU sector — territory Intel has traditionally dominated.

As artificial intelligence firms transition from model training to deployment phases, CPU requirements are increasing. Nvidia aims to capture market share in this segment.

Analyst opinions show divergence. Tigress Financial maintains a Buy rating with a $66 price objective. Conversely, Wedbush holds a Neutral stance with a $30 target. UBS established a $51 target. MarketBeat’s consensus stands at “Reduce” with a $45.74 price target, while TipRanks reports an average of $48.21 based on recent analyst coverage.

Insider transactions show mixed signals. EVP David Zinsner acquired approximately $250,000 in stock during late January. EVP April Miller disposed of $981,000 worth of shares in early February.

Institutional ownership accounts for 64.53% of INTC shares. The stock’s 50-day moving average stands at $44.26, while the 200-day moving average registers at $37.07.

The consensus analyst price target of $48.21 suggests approximately 6.67% potential upside from current trading levels.

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