Analysts warn recent selloff reflects rotation, not a peak, as Intel’s stock retreats from record highs driven by AI chip demand.
Intel Corporation (NASDAQ:INTC) shares fell 23% in July, paring gains after a 343% surge year-to-date and 165% rise in 2026. The decline follows a broader rotation out of high-flying semiconductor stocks, despite strong demand for AI chips.
Cantor Fitzgerald raised its price target to $150 from $90 on June 29, maintaining a Neutral rating, citing Intel’s central role in a generational semiconductor cycle. The firm highlighted the company’s positioning amid booming AI chip demand, though recent volatility has sparked caution among investors.
Market observers, including Jim Cramer, described the pullback as a “brutal rotation” rather than a market top. Aoris Investment Management noted in its Q1 2026 letter that Intel’s historical rigidity in adapting to shifts like mobile computing left it vulnerable to technological change.