Intel’s stock fell to $96.98 after TSMC’s record margins and higher capex spooked semiconductor investors.
Intel Corporation (INTC) shares declined 5.84% to $96.98 on Thursday, erasing gains despite an expanded AI partnership with Google Cloud. The drop followed Taiwan Semiconductor Manufacturing’s (TSMC) earnings report, which revealed a 67.7% gross margin and raised its 2026 capital spending target to $64 billion from $56 billion.
Investors interpreted TSMC’s higher capex as a sign that AI-driven demand will take years to translate into free cash flow. Semiconductor stocks fell broadly, with Intel—still struggling to prove its foundry profitability—hit harder than peers. The company had already retreated from a 52-week high of $142.35 in June amid concerns over its 18A process yields.
The sell-off underscored broader skepticism about the sector’s near-term profitability, despite Intel’s efforts to bolster its AI credentials through partnerships.