Intel just gave back a painful chunk of what had been one of 2026’s most impressive rallies. Shares dropped roughly 21% over seven trading days in early July, sliding from around $140 to approximately $110, as news broke that the company’s critical 18A manufacturing process won’t hit profitable yields until late 2026 or possibly 2027.
For a stock that had climbed about 270% in the first half of the year, the correction is a jarring reminder that semiconductor rallies run on execution, not promises.
What actually went wrong
The 18A process node is the centerpiece of Intel’s entire foundry comeback story. It’s the technology that was supposed to prove Intel could manufacture chips at the cutting edge again, competing with TSMC and Samsung for external customers. Investors had been pricing in a 2026 ramp-up. Now they’re being told to wait longer.
Making matters worse, AMD posted higher quarterly data-center revenue than Intel for the first time. Data centers are where the real margin lives in the chip business, and losing that crown to a rival that was considered an underdog a decade ago stings in ways that quarterly guidance can’t easily fix.
