Why Intel Stock Is Sinking Today
Intel's stock is down 1.6% amid a broader tech-sector decline, influenced by macroeconomic concerns and investor caution ahead of Nvidia's Q4 report. While the S&P 500 remains flat, Intel's valuation is pressured by potential tariffs and market dynamics. Despite the sell-off in AI-related stocks, Intel's decline is moderate. Future movements may hinge on Nvidia's results and reports of potential sales or partnerships with Taiwan Semiconductor Manufacturing and Broadcom.
Intel (INTC -1.93%) stock is losing ground Monday amid a broader tech-sector slide. The semiconductor company's share price was down 1.6% as of 3:20 p.m. ET after being down by as much as 5% earlier in the session. Meanwhile, the S&P 500 index was essentially flat for the day and the Nasdaq Composite was off by about 0.6%.
Intel's valuation is moving lower as investors continue to consider the impact that tariffs and other macroeconomic dynamics could have on its business. Some investors are also reducing their exposure to the tech sector ahead of Nvidia's fourth-quarter report, which is scheduled to be released after the market closes on Wednesday.
Macro concerns and Nvidia jitters
The technology sector is seeing valuation pullbacks due to macroeconomic risk factors and concerns about the volatility that may follow Nvidia's Q4 release and conference call. Many companies with exposure to the artificial intelligence (AI) space are seeing outsized sell-offs, but Intel's declines actually look fairly moderate compared to the field.
The average Wall Street analyst estimate calls for Nvidia to post net income of roughly $21.1 billion on sales of approximately $38 billion for the quarter. Tech sector valuations could make some big moves depending on the quality of the company's results and management's guidance.
What's next for Intel?
While Nvidia's Q4 numbers could have a significant impact on Intel stock this week, there could be much more significant catalysts for the smaller chip company on the horizon. Reports have emerged that Intel is looking to sell some or all of its business units.
Taiwan Semiconductor Manufacturing is reportedly interested in buying Intel's foundry business or partnering with the company to run the unit. Meanwhile, Broadcom is reportedly interested in buying the company's chip design business. Intel stock could be poised for dramatic moves depending on how these potential buyouts and partnerships shake out.