U.S. equity markets were closed Friday for the Independence Day holiday, with Nasdaq and NYSE set to resume trading Monday. The latest trading data for Intel Corporation (NASDAQ:INTC) comes from Thursday's session, where the stock slid 5.25% to $120.35. However, the more significant story was the sheer volume of shares changing hands—approximately $15.0 billion in notional value, matching Advanced Micro Devices (NASDAQ:AMD) despite AMD having roughly $240 billion more in market capitalization.
Intel's turnover hit 2.5% of its market value, more than four times the same-day turnover ratio at Nvidia (NASDAQ:NVDA), which stood at 0.6%. This elevated activity suggests a rapid repositioning by investors ahead of the company's second-quarter earnings report, scheduled for release after the bell on July 23, with a conference call at 2 p.m. PDT.
The stock has retreated 15.5% from its record high of $142.35 on June 30, dropping 13.8% in just two sessions. For the week through Thursday, Intel shares were down 6.2%, including the holiday break. The broader semiconductor sector also faced headwinds, with the PHLX Semiconductor Index (SOX) falling 5.4% on Thursday, though it still boasts a 78% year-to-date gain.
Bruce Zaro, managing director at Granite Wealth Management, told Reuters that some traders were "taking profits" in chip names after a strong rally this year. The Nasdaq Composite dipped 0.8% on Thursday, weighed down by chip weakness, while the S&P 500 was flat and the Dow Jones Industrial Average rose 1.14% to a new record close.
Intel's upcoming earnings are critical. In April, the company guided for Q2 revenue of $13.8 billion to $14.8 billion and non-GAAP EPS of $0.20 at the midpoint. Investors will focus on Data Center and AI revenue, Intel Foundry revenue, gross margins, and demand commentary from external customers. In Q1, Intel reported revenue of $13.6 billion (up 7%), with Data Center and AI revenue jumping 22% to $5.1 billion and Foundry revenue rising 16% to $5.4 billion.
Despite a bullish analyst note from HSBC's Frank Lee, who raised his Intel price target to $200 from $100 and maintained a Buy rating, citing the foundry business as "too good to ignore" and potential design commitments starting in the second half of 2026, the stock continued to decline. Lee highlighted ties with Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL), Nvidia, Microsoft (NASDAQ:MSFT), and Amazon (NASDAQ:AMZN), as well as Intel's EMIB packaging technology amid tightening rival foundry capacity.
Macroeconomic data provided little support. The U.S. added only 57,000 jobs in June, well below the 110,000 forecast. Adam Sarhan, CEO of 50 Park Investments, told Reuters the softer number "takes the pressure off the Fed to raise rates in the short term." Looking ahead, the Fed minutes from the latest meeting are due Wednesday, with ISM services data on Monday, trade data Tuesday, and jobless claims Thursday. Delta Air Lines (NYSE:DAL) and PepsiCo (NASDAQ:PEP) are also set to report earnings early next week.
With elevated turnover and a sharp pullback from highs, Intel remains a high-conviction bet for many investors, but the next few weeks will be pivotal as the company delivers its Q2 results and provides forward guidance.
