INTC Stock Today, December 24: Shares Drop as Nvidia Pauses 18A Test
INTC stock fell in the US session after reports that Nvidia paused testing of Intel’s 18A manufacturing process. Shares recently traded near $36, with losses easing after an early slide. The news cools hopes for a flagship foundry win and revives questions around yields and timing. We break down price action, technical levels, Street targets, and the strategic read-through for Intel’s foundry push. First mention: INTC. We also compare moves in NVDA to frame relative sentiment.
What Nvidia’s Pause Means for Intel’s 18A Ambitions
Reports indicate Nvidia paused a manufacturing test with Intel, trimming near-term confidence in a potential foundry partnership. The headline hit sentiment as investors reassessed the likelihood and timing of large external wafer orders. Coverage first appeared at Yahoo Finance, which noted the share reaction and the renewed focus on execution risk tied to the Nvidia manufacturing test.
The 18A node aims to reset leadership, but the pause spotlights yield progress and calendar risk. Competitive pressure from existing suppliers remains high, so proof points matter. As noted by The Verge, the status of the trial affects investor confidence in the Intel 18A process and the odds of winning major, high-volume customers.
Price Action, Levels, and Technical Picture
INTC stock traded around $36.16, off about 0.5% after an earlier drop near 2%. Intraday ranges showed a low of $34.95 and a high of $36.17, with an open at $35.17. The 50-day average sits near $38.01, versus the 200-day at $27.11. Bollinger’s middle band around $38.87 marks overhead resistance, while ATR of 1.84 signals elevated day-to-day swings.
RSI at 43.49 leans neutral-to-weak, and MACD remains negative, with a -0.26 reading and a softer histogram. ADX near 20 suggests no strong trend. Oversold oscillators are mixed: Stochastic %K at 10.02 and Williams %R at -91.02 show weakness. For INTC stock, sustained closes above $38 would improve momentum; failure to hold $35 risks a retest of $34.
Valuation, Street Views, and Targets
The Street stance is cautious: 4 Buy, 14 Hold, 5 Sell. The consensus target sits near $32.13, with a median of $30, high at $52, and low at $19. That range implies balanced upside and downside from current levels. For INTC stock, investors should watch for target revisions if 18A milestones slip or new customer wins emerge.
Intel’s trailing EPS is $0.06, making its P/E look inflated at roughly 602.7. Price-to-book of about 1.53 appears more reasonable. Current ratio of 1.60 and debt-to-equity near 0.44 look manageable, though free cash flow per share is negative. R&D stood near 27% of revenue. INTC stock likely needs clearer margin and cash flow traction to command higher multiples.
Strategic Setup: Foundry Push vs Near-Term Risk
Intel is investing to build a top-tier US foundry and win external customers on advanced nodes. Today’s headline weighs on Intel shares today, but the broader thesis hinges on repeatable yields, competitive pricing, and credible delivery windows. Clear 18A milestones, third-party tape-outs, and customer roadmaps would help rebuild confidence across both PC and data center end markets.
Key catalysts include updates on 18A yield, any resumed or new trials, and customer announcements. Financial markers to track: gross margin mix, capital intensity, and free cash flow trajectory. For INTC stock, price reclaiming the 50-day near $38 would be constructive. Conversely, repeated closes below $35 could invite value screens but also signal continued uncertainty.
Final Thoughts
Nvidia’s test pause does not end Intel’s foundry effort, but it raises the bar for proof. The market wants steady 18A yield updates, clearer customer pathways, and firmer delivery timelines. In the near term, technicals lean cautious, with resistance near $38 and support around $35 and $34. Valuation looks mixed: a high P/E due to thin earnings, a more grounded price-to-book, and a still-recovering cash flow profile. Our takeaway for investors is simple: keep position sizes modest, track execution markers, and let price confirm progress. If momentum rotates above the 50-day average on credible 18A wins, risk-reward improves. None of this is investment advice. Do your own research.
FAQs
No. The report signals near-term uncertainty, not the end of 18A. It highlights the need for better yields, schedules, and customer validation. Investors should watch for updated 18A milestones, third-party tape-outs, and any renewed trials before drawing conclusions about long-term foundry prospects.
Watch $38 near the 50-day average as resistance, then $39 to $40. On the downside, $35 is a key line, with $34 as backup support. RSI near 43 and a negative MACD suggest cautious momentum. A close above $38 would improve the short-term setup.
The Street is cautious: 4 Buy, 14 Hold, 5 Sell. The consensus target is about $32.13, with a $30 median, $52 high, and $19 low. Expect revisions if 18A execution strengthens or weakens, especially with new customer commitments or schedule updates.
It depends on your horizon. The P/E near 602 is skewed by low earnings, while the price-to-book around 1.53 looks more grounded. Balance sheet ratios are decent, but free cash flow is negative. Without clearer margin and cash flow gains, multiple expansion may be limited.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
