Intel Drops 21% in a Week as 18A Ramp Pressures Margins
Updated
Updated · Trefis · Jul 9
Intel Drops 21% in a Week as 18A Ramp Pressures Margins
3 articles · Updated · Trefis · Jul 9
Summary
Intel shares fell 21% over the past week as investors weighed strong AI-related demand against supply constraints and margin pressure from its new manufacturing ramp.
Intel’s history suggests sharper downside in broader selloffs: across 15 major market shocks, the stock’s average peak-to-trough decline was 23%, versus about 16% for the S&P 500.
The worst case was a 54% plunge during the 2008-2009 financial crisis, while the slowest rebound came after the 2022 inflation shock, when recovery to the prior peak took about 48 months.
Current fundamentals cut both ways: AI-driven businesses now make up 60% of revenue and grew 40% year over year, but management says the Intel 18A process is a headwind to gross margins and expects weaker second-half PC demand.
That volatility has portfolio implications: a 54% drop would cut about 5% from a portfolio with a 10% Intel weighting, underscoring how position size shapes risk.