Intel Stock Slides After Citi Downgrade Amid Foundry Concerns
Intel shares fell 3% Thursday after Citigroup downgraded the chipmaker, citing persistent challenges in its foundry business. The bank maintains a Sell rating, noting Intel remains technologically behind TSMC and recently lost a packaging partnership with Nvidia due to technical issues.
Despite year-to-date gains of 66%, Intel has shed 11% over the past month. Analysts now see downside risk to $30 from current $33 levels, as major clients like Qualcomm and Apple evaluate but hesitate to adopt Intel's packaging technologies.
The downgrade reflects broader skepticism about Intel's ability to compete in advanced chip manufacturing. While the company generates strong cash flow, technical execution risks continue to overshadow its foundry ambitions.
