Intel Falls as Manufacturing Snags Bedevil Comeback | Bloomberg Tech 1/23/2026

Intel Corp. shares plummeted on Friday, dragging down the semiconductor sector after the chipmaker revealed significant manufacturing setbacks and a sales outlook that missed investor expectations, capping a volatile week in global technology markets. While Intel struggles with production yields, competitors and major tech players moved forward with significant strategic pivots, including Beijing granting initial approval for Chinese tech giants to order Nvidia’s H200 AI chips and a consortium led by Oracle finally closing the deal to operate TikTok in the U.S.

Key Developments in Global Tech

• Intel Plunges: The chipmaker is on track for its worst drop since August 2022 due to low manufacturing yields and a weak sales forecast, reversing a 47% year-to-date rally.
• China Opens Door to Nvidia: Beijing has authorized Alibaba, Tencent, and ByteDance to prepare orders for Nvidia’s advanced H200 AI processors, signaling a pragmatic shift in tech policy.
• TikTok Deal Closes: After years of regulatory scrutiny, a consortium involving Oracle, Silver Lake, and MGX has finalized the acquisition of TikTok’s U.S. operations.
• Fintech Consolidation: Capital One agreed to acquire fintech startup Brex for $5.15 billion, a significant discount from its 2022 valuation of $12 billion.

Intel’s Manufacturing Snags Halt Comeback

Intel’s ambitious turnaround strategy faced a harsh reality check this week as the company disclosed severe execution issues within its foundry business. Despite a stock price that had surged nearly 50% in the first few weeks of 2026, the company’s manufacturing division is grappling with low yields—the number of usable chips produced per batch.

The shortfall in production has left orders on the table, particularly regarding server chips where demand remains high. According to industry analysts, the inability to demonstrate efficiency undermines Intel's pitch to external customers for its foundry services. The company faces a critical "chicken and egg" dilemma: it requires customer volume to fund expensive factory expansions, but customers are hesitant to commit without proof of reliable manufacturing at scale.

"Intel had its challenges. They went down, in retrospect, the wrong path in terms of process technology... Clearly, we're seeing that it's more challenging than perhaps investors recognized. Investors really got ahead of the story."
— Joanne Feeney, Partner and Portfolio Manager at Advisors Capital Management

The manufacturing stumbling blocks have raised concerns about Intel's ability to compete with TSMC and Nvidia, particularly as it attempts to establish its "14A" process technology. Feeney noted that while government investment provided a perceived floor for the stock, the operational reality—gross margins missing historical benchmarks of 60%—indicates a longer road to recovery.

Geopolitics: China’s AI Shift and the TikTok Resolution

In a major geopolitical development, sources confirm that Beijing has given the green light to China’s largest hyperscalers—Alibaba, Tencent, and ByteDance—to begin preparing orders for Nvidia’s H200 AI chips. This move suggests that the Chinese government is prioritizing the immediate technological needs of its tech sector over strict protectionism, despite ongoing tensions with Washington.

While the Trump administration had previously approved the export of these specific chips, uncertainty remained regarding Beijing's willingness to allow them into the domestic market. The approval comes with caveats, including requirements for these companies to continue purchasing from domestic suppliers like Huawei to support local industry development.

TikTok’s U.S. Saga Concludes

Simultaneously, one of the most protracted tech regulatory battles has ended. A consortium led by Oracle, Silver Lake, and MGX has completed the deal to operate TikTok in the United States. The agreement brings closure to nearly seven years of uncertainty regarding the app's ownership and data security protocols.

Adam Presser, a long-time insider and former Warner Media executive, has been appointed CEO of the new U.S. entity. Presser, who previously led TikTok’s U.S. data security initiatives, will oversee the platform as it attempts to navigate the post-acquisition landscape under continued scrutiny.

Fintech M&A and Private Market Valuations

In the financial technology sector, Capital One announced it will acquire corporate card and expense management startup Brex in a cash-and-stock deal valued at $5.15 billion. The acquisition marks a pivotal moment for the fintech industry, representing the largest bank-fintech deal in history.

The $5.15 billion price tag represents a steep discount—more than 50%—from Brex’s peak private valuation of $12 billion in 2022. However, Brex CEO Pedro Franceschi defended the valuation, citing the strategic advantages of merging Brex’s software capabilities with Capital One’s balance sheet and distribution scale.

"We really saw this very unique combination of bringing Brex's technology, product, and platform with Capital One's scale, brand, distribution, and balance sheet... It’s about building something bigger than what we could ever build as a standalone company."
— Pedro Franceschi, CEO of Brex

The deal highlights a broader trend in private markets where "unicorns" and "decacorns" are navigating a shifted valuation landscape. Peter Singlehurst, Head of Private Companies at Baillie Gifford, noted that while valuations have adjusted, the structural shift of companies staying private longer remains intact. He pointed to massive private valuations, such as SpaceX’s potential $800 billion valuation, as evidence that growth is increasingly accruing outside public markets.

Autonomous Driving and Corporate Restructuring

Tesla has begun offering robotaxi rides in Austin, Texas, without human safety drivers, a significant milestone for its vision-only autonomous driving system. Unlike competitors such as Waymo, which utilize a suite of sensors including LiDAR, Tesla relies solely on cameras. While the deployment is currently limited, CEO Elon Musk has framed the progress as a step toward artificial general intelligence (AGI).

Meanwhile, Apple is signaling its future leadership plans. John Ternus, the company’s hardware chief, has reportedly expanded his responsibilities to include oversight of design teams. This consolidation of power over both hardware engineering and the "look and feel" of devices places Ternus at the forefront of potential successors to CEO Tim Cook.

In contrast to Apple's stability, Amazon is preparing for further workforce reductions. Sources indicate the e-commerce giant plans to terminate thousands of corporate employees as soon as next week, following a previous announcement of 14,000 role cuts. The move comes as Amazon continues to streamline operations ahead of its earnings report.

What to Watch Next

Investors are bracing for a deluge of data as the "Magnificent Seven" earnings season kicks off. Market attention will focus heavily on capital expenditure related to artificial intelligence. With companies like Microsoft, Meta, and Tesla set to report, the key metric will be the return on investment for the billions poured into AI infrastructure.

For Apple, analysts will be scrutinizing the impact of rising memory chip prices on margins. For the broader market, the question remains whether the AI growth narrative can sustain the massive valuations of mega-cap tech stocks amidst a slowing growth environment.