Intel Shares Pull Back After 100% Rally as OpenAI Reports Weigh on Chips
Intel shares fell in the Nasdaq and S&P 500 pullback after tech weakness linked to OpenAI missing targets knocked down chip stocks including Intel, which still trades 100% above its March 30 lows. Separately, Mobileye reported a non-cash Q1 write-off but saw robust ADAS sales driving modular chip growth.
1. Chip Sector Pullback
On April 28, Nasdaq and S&P 500 slipped from record highs as tech stocks weakened on reports of OpenAI missing internal usage targets, triggering a sell-off in semiconductor names. Intel shares declined alongside peers Nvidia and Broadcom, reflecting broader concerns over future data center spending.
2. Intel’s Rally Context
Despite the pullback, Intel stock remains up roughly 100% since the March 30 market low, driven by expectations for robust AI and data-center demand. Investors have bought recent dips amid optimism about Intel’s roadmap and its role in emerging compute infrastructure.
3. Mobileye Q1 Performance
Mobileye, majority-owned by Intel, booked a significant one-time non-cash write-off in Q1 results tied to legacy accounting adjustments, which distorted GAAP margins. Underlying growth remained strong as its ADAS modular chips continued scaling across dozens of automakers, supporting normalized margin expansion.