intel stock drops after failed broadcom wafer tests
- Intel's shares fell 2.70% to $19.57 on Wednesday, following a significant 7.7% drop the previous day.
- The decline is attributed to failed tests on silicon wafers for Broadcom, which were conducted using Intel's 18A manufacturing process.
- Despite the setbacks, Intel claims its 18A process is healthy and on track for high-volume production next year, but the stock remains the worst performer in the Dow Jones Industrial Average for 2024.
Intel Corporation's stock has faced significant challenges recently, with shares dropping 2.70% to $19.57 on Wednesday, following a 7.7% decline the day before. This downturn is primarily linked to unsuccessful tests on silicon wafers intended for Broadcom, which utilized Intel's 18A manufacturing process. The tests were conducted last month, and Broadcom's engineers concluded that the process was not yet prepared for high-volume production. In response to the situation, an Intel spokesperson stated that the 18A process is operational and yielding satisfactory results, asserting that the company is on track to commence high-volume manufacturing next year. Despite this optimistic outlook, the market reaction has been negative, reflecting broader concerns about Intel's performance. The company's stock has plummeted over 60% year-to-date, making it the worst performer in the Dow Jones Industrial Average for 2024. Analysts have mixed views on Intel's future, with one positive rating, 11 neutral, and four negative ratings. The average 12-month price target for Intel shares is $26.81, indicating potential for recovery, although the stock's current trajectory raises questions about its viability. Overall, while Intel is attempting to reassure investors about its manufacturing capabilities, the recent failures and stock performance suggest a challenging road ahead for the company as it navigates the competitive semiconductor landscape.