Intel (INTC -4.17%) stock saw some big swings and closed the day in the red in a tough session for the tech sector. The company's share price fell 4.2% in the day's trading, despite having been up as much as 5.5% earlier in the session.
Intel initially defied market momentum and moved higher today thanks to a pair of bullish catalysts. In addition to reports that Nvidia and Broadcom are continuing to test one of the company's chip fabrication platforms, investors also thought that President Donald Trump could be making a big announcement about Intel and Taiwan Semiconductor Manufacturing (TSMC) today. But a different announcement came, and it sparked a big pullback for Intel stock.
Reuters published a report today stating that Nvidia and Broadcom are still testing Intel's 18A chip fabrication process to see if it's a suitable fit for their designs. The 18A process has been the key centerpiece of Intel's chip foundry strategy, but thus far, it hasn't yielded substantial contract wins from outside customers. News that two of the most influential artificial intelligence (AI) chip designers are still potentially interested in 18A is good news for Intel's fab business, and investors initially thought they would be getting more good news today.
TSMC CEO C.C. Wei met with President Trump today, and the two announced a $100 billion new investment in the U.S. semiconductor industry. TSMC has previously been named as a potential buyer or partner for Intel's foundry business, and some investors were placing bets that news along these lines would be announced today. But no news about a big deal between Intel and TSMC arrived, and investors quickly sold out of the former company's stock.
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