Intel Shares Slip as Nvidia–Meta Data Center Pact Intensifies Scrutiny of Weak Outlook and Yields

Overview

• Intel fell 1.3% to $46.18 on Tuesday, extending a roughly 7% one‑week slide on trading volume about 52% below its average.
• Reports that Meta plans a large Nvidia Grace‑only CPU deployment heightened concerns about Intel’s position in data center computing.
• Q4 results beat EPS expectations at $0.15 as revenue declined 4.2% to $13.67 billion, and Q1 2026 EPS guidance was set at $0.00.
• Manufacturing headwinds persist with foundry yields at 55–65% versus 80–90% industry norms, about $12 billion in losses since 2021, “acute” internal supply constraints, and rising costs for memory and substrate wafers.
• Wall Street’s consensus rating is Reduce with a $45.74 average price target (recent coverage averages $48.21), while Intel pursues AI efforts including a $100M+ SambaNova investment and a Saimemory ZAM prototype alongside mixed insider trades and increased institutional stakes.