Intel (INTC) shares slid for a third consecutive session on Thursday, extending a pullback that has trimmed the semiconductor giant’s staggering multi-month rally. The decline reflects a combination of renewed short-selling pressure and fresh evidence that Intel is losing ground in the critical server CPU market to rivals AMD and Arm.
Short Sellers Re-enter Despite Heavy Losses
Bearish positioning in Intel has surged back to near one-year highs, even after short sellers reportedly absorbed more than $12 billion in paper losses during the stock’s explosive run. Data from market tracking firms shows that short interest remains elevated, suggesting many traders believe the $440 billion surge in market value since late March is unsustainable. Intel has become a focal point of the momentum trade in large-cap tech, with its stock nearly tripling at peak levels. Some strategists warn that such crowding often precedes consolidation or a sharper reversal.
Server CPU Market Share Slides
A UBS note released Thursday highlighted that Intel’s share of the server CPU market – on a unit basis – tumbled roughly 370 basis points to 54.9% in the first quarter of 2026. AMD gained 230 basis points to reach 27.4%, while Arm climbed 140 basis points to 17.7%. UBS analyst Timothy Arcuri stated bluntly: “Arm and AMD units outgrew and continued to gain share at the expense of Intel.” The irony is that total server CPU shipments actually rose 19% year-over-year, but Intel failed to keep pace. Looking ahead, UBS projects the server CPU market will balloon from $30 billion in 2025 to $170 billion by 2030, with Arm capturing a disproportionate 40–45% of unit shipments. Intel and AMD are expected to split the remainder roughly equally.
Insider Sales and Institutional Moves
Adding to investor caution, Intel Executive Vice President April Miller Boise sold 40,256 shares on May 1 at an average price of $99.53 – a transaction worth about $4 million that reduced her position by 27.7%. On the institutional side, Money Concepts Capital Corp trimmed its Intel stake by 28%, while Trek Financial boosted its holdings by over 400%. Intel’s latest earnings report on April 23 beat expectations, with EPS of $0.29 versus a $0.01 consensus and revenue of $13.58 billion, but the company still faces concerns over stretched valuations and negative free cash flow. Analysts maintain an average “Hold” rating with a consensus price target of $77.38 – well below the stock’s premarket level near $116.
