Intel Corp (NASDAQ:INTC) shares are trading lower Wednesday afternoon following a report that CEO Lip-Bu Tan is considering a strategic pivot away from marketing its costly 18A chipmaking process to external clients, per a Reuters report.
What To Know: The potential move comes as the semiconductor giant grapples with substantial financial losses and intense competition from industry leader Taiwan Semiconductor Manufacturing Company.
Per Reuters, sources familiar with the matter indicate Tan is skeptical about the external sales viability of the 18A process, which has incurred billions in development costs but has failed to attract major customers. Halting this foundry effort could lead to a substantial write-off, potentially in the hundreds of millions.
In response, Reuters reported Intel stated it doesn’t comment on hypotheticals but confirmed its commitment to using the 18A process for its internal products, such as the upcoming Panther Lake laptop processor. The company will also honor existing agreements with Amazon and Microsoft.
This reevaluation marks a critical juncture for Intel, which posted a staggering $18.8 billion loss in 2024. The discussions, which could begin this month, suggest a strategic shift towards the next-generation 14A process, which Intel believes will offer a more competitive edge against TSMC in the fierce global chip race.
Price Action: According to data from Benzinga Pro, INTC shares are trading lower by 3.4% to $22.07 Wednesday afternoon. The stock has a 52-week high of $37.16 and a 52-week low of $17.66.
Read Also: Taiwan Semiconductor Outperforming The Market Shows Moat, But It Comes With Risk
How To Buy INTC Stock
By now you're likely curious about how to participate in the market for Intel – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
In the case of Intel, which is trading at $22.27 as of publishing time, $100 would buy you 4.49 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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