Intel Stock (NASDAQ: INTC) Slides 7% After TSMC Dismisses Foundry Deal Rumors

Intel’s Volatility Continues Amid Contradicting News

Intel stock has experienced sharp swings in recent months, making it one of the most volatile names in the semiconductor industry. After surging 40% to $27.55 in early February, the stock reversed course, falling to $19.29 last Tuesday. A strong rebound followed last week, sending Intel (INTC) up 37% to close at $25.92 yesterday. However, today’s trading session brought fresh selling pressure, with the stock opening at $24.89 and plunging nearly 7% lower to $24.

TSMC’s Liu Shuts Down Buyout Speculation, Weighs on INTC

The latest drop in Intel shares comes after Paul Liu, a board member at Taiwan Semiconductor Manufacturing (TSMC) and head of Taiwan’s National Development Council (NDC), denied reports that TSMC was considering acquiring Intel’s foundry division. This was a major blow for Intel, which had hoped for a strategic partnership with the world’s largest chipmaker. Over the past few months, speculation swirled that Intel and TSMC might collaborate on foundry operations, potentially bringing in major industry players like Nvidia and AMD.

Intel Stock Chart Daily – Returning Back Down Fast

Despite Intel’s efforts to reposition itself as a leading foundry provider, Liu dismissed the speculation, comparing a potential Intel-TSMC merger to “mixing diesel and gasoline”—an analogy suggesting fundamental incompatibilities between the two companies. This statement effectively undermined one of the key bullish narratives behind Intel’s recent rally, causing investors to rethink their positions.

CEO Change and Chip Strategy Shift Offer Hope

While the denial of a potential TSMC partnership has cast doubt on Intel’s turnaround strategy, the company’s recent leadership change and shift in chip manufacturing strategy remain key factors driving investor sentiment. Lip-Bu Tan’s appointment as Intel’s CEO last week was seen as a positive move, given his extensive experience in the semiconductor sector. His leadership will be critical in shaping Intel’s future as it competes with TSMC, Samsung, and other global chipmakers.

Conclusion: Can Intel Regain Momentum?

The Nasdaq Composite, which is heavily weighted with tech stocks, has been climbing as most major tech firms trade higher, but Intel stands out as an underperformer today. While the stock’s rally last week suggested optimism about its restructuring efforts, today’s drop highlights ongoing investor uncertainty about the company’s ability to compete in the fast-evolving semiconductor landscape. Intel must now prove its ability to execute its foundry ambitions without TSMC’s involvement, as the market reassesses whether the stock’s recent surge was justified or premature.