Shares of Intel (INTC) ended Friday down 5.14%, and the pressure on the stock continued at the start of trading on Monday. An additional reason for the sell-off was the new Nvidia chip, which targets one of Intel‘s key business segments.
The drop interrupted one of the most notable rallies of the year. Since the start of 2026, Intel shares had gained significantly in price, but signs of weakening demand appeared even before Nvidia‘s announcement.
According to market data, some large investors began reducing their positions in advance. Thus, the news of a new competitor product only increased the pressure on the stock, which had already been building in recent weeks.
Intel shares plunged after the Nvidia presentation. Source: Google Finance
Shares Lose Momentum as Nvidia Captures Market Attention
In 2026, Intel showed impressive growth. From late March, the company’s shares rose from about $40 to nearly $133 by May 11. During this period, the stock gained more than 230%.
After such a surge, the market paused. The price moved sideways for a while, forming a technical pattern that traders usually see as a continuation of an uptrend. Around May 20, the shares tried to resume growth, but the move failed to develop.
The situation changed at the end of last week. On Friday, Intel shares fell by 5.14%, and trading volume reached about 191.7 million shares, which is noticeably above average.
Rising volumes amid falling prices usually indicate profit-taking after a strong rally. For now, the market looks more like a stage of active selling by investors rather than new position building ahead of further growth.
Intel share price and trading volume dynamics. Source: TradingView
Nvidia Increases Pressure on Intel
Another factor in the sell-off was the Computex expo. It was there that Nvidia unveiled the superchip RTX Spark, a processor based on Arm architecture with Blackwell graphics, designed for laptops and desktop computers running Windows.
The first devices on the new platform are expected as early as this fall. Among Nvidia partners are Dell, HP, Microsoft, Lenovo, ASUS and MSI.
Many in the market saw this announcement as an attempt by Nvidia to strengthen its position in a segment where Intel has traditionally been one of the main players. After the presentation, pressure on Intel shares increased significantly.
On the same day, Intel announced its own AI accelerator Crescent Island. However, the new product is still in the early stages of development, with the first samples expected only in a few months. Thus, the announcement could not offset the effect of the competitor’s presentation.
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Now investors are trying to figure out whether the current decline is only due to news around Computex or if large funds have really started taking profits after months of Intel share growth.
Institutional Investors Are Becoming More Cautious
The technical picture does not yet provide clear signals for a recovery. Although Intel shares are still holding above key levels after the recent rally, cash flow data looks less optimistic.
Analysts at Morgan Stanley have taken note of this. In their view, interest from large clients and institutional investors no longer looks as strong as it did a few weeks ago.
An additional signal was the Chaikin Money Flow (CMF) indicator, which is used to assess capital inflows and outflows. While Intel shares continued to rise, the indicator itself began to decline.
From May 18 to 29, the shares hit new local highs, but CMF moved in the opposite direction. Now the indicator has dropped to about 0.13 and is near the upward support line.
For traders, this situation is considered a warning sign. If CMF continues to decline and breaks current support along with weakening price, pressure on Intel shares could increase significantly.
Decline of the CMF indicator on Intel shares. Source: TradingView
Fundamental Problems Have Not Gone Away
Investor caution is not only due to the technical picture. Market participants continue to monitor the progress of Intel‘s contract manufacturing, which the company sees as a key element of its recovery strategy.
According to Morgan Stanley, the yield rate for chips on the Intel 18A process is now about 50%. Analysts also noted that so far only Apple has signed a contract to use the technology.
For a business that is supposed to be one of Intel ‘s main growth drivers in the coming years, this order volume still looks rather modest.
That is why some investors chose to take profits after the rapid share growth. The market has not yet received enough signals to convince it of the long-term success of the company’s new strategy.
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Against the backdrop of Intel’s decline, a natural question arose: are investors’ funds flowing into Nvidia?
However, cash flow indicators show the opposite. The CMF indicator for Nvidia shares is also deteriorating and has already dropped below zero, to about -0.08. For comparison, Intel ‘s indicator is still positive.
This may indicate that institutional investors are now reducing activity across the entire semiconductor sector, not just shifting capital from Intel to Nvidia. For now, the market seems to prefer a wait-and-see approach.
Cash flow in Nvidia shares remains under pressure. Source: TradingView
An additional risk for Intel shares is now also seen in the options market.
Options statistics also do not look very comfortable for buyers. After months of growth, a large number of participants betting on a continued rally have accumulated in the stock.
While this is not yet critical, if prices continue to fall, many of these participants may start to exit their positions at the same time. In such situations, selling often intensifies on its own and becomes an additional factor of pressure on the market.
That is why Intel’s next moves will be especially important for traders. After a powerful rally, the market has become much more sensitive to any signs of weakening demand and profit-taking.
Put-call ratio for Intel shares. Source: Barchart
Now all market attention is focused on key support and resistance levels. These will help determine whether the current decline is a normal correction after a strong rally or will turn into a deeper trend reversal.
Which Levels Are Now Important for Intel Shares
After the recent pullback, investors are closely watching key price levels that may determine the further movement of Intel shares.
The nearest serious resistance remains at $128. The market sees this level as the main barrier to renewed growth.
Interestingly, this assessment coincides with one of the few relatively positive targets on Wall Street. At the end of May, Mizuho Securities maintained a neutral recommendation on Intel shares but raised its target price from $124 to $128.
Other major banks remain more cautious. Barclays recently raised its target from $65 to $100, and Wells Fargo increased its forecast from $85 to $110. Despite the revised estimates, both targets are still below current market levels.
This shows that analysts still do not have a unified view on Intel’s future prospects. After a strong share rally, the market is waiting for new confirmation that the company can really deliver on its plans in AI and contract chip manufacturing.
Intel estimates from leading investment banks. Source: TipRanks
What Is Next for Intel Shares
Market attention is now focused on the $128 level. If the shares manage to firmly hold above this mark, the next target may be the $136 area, followed by $144.
However, after the recent drop, this scenario no longer looks so obvious. Just a few weeks ago, the technical picture suggested a much higher growth potential, but news from Nvidia has noticeably cooled investor optimism.
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At the same time, downside risks have not gone away. According to analysts, the situation could worsen if prices fall below $102. Such a scenario could trigger further profit-taking and closure of long positions.
If pressure increases along with a drop in the CMF indicator and the unwinding of some bullish options bets, the shares could enter a deeper correction. In this case, some analysts allow for a return to the $64 area.
Adding intrigue is the upcoming speech by Intel CEO Lip-Bu Tan at the Computex expo, scheduled for June 2. Investors will be closely watching his statements, as new announcements or strategy updates could either rekindle interest in the stock or reinforce current market concerns.
Technical analysis of Intel shares. Source: TradingView
For now, the $128 mark remains the main reference point for the market. Holding above this level could bring back talk of further growth toward $144. If the shares fail to recover, the correction risks dragging on. In that case, investor attention will shift to the $102 area, and if selling intensifies, the market may test even lower levels.
