<div id="readability-page-1"><p>Shares of <strong>Intel</strong> <span>(INTC<span> -3.97%</span>)</span> are falling on Wednesday. The semiconductor giant's stock lost 4.4% as of 3:30 p.m. ET and as much as 4.9% earlier in the day. The fall comes as the <strong>S&amp;P 500</strong> lost 0.2% and the <strong>Nasdaq Composite</strong> rose 0.3%.</p> <p>A Citi research note revealed Intel's market share has fallen to a two-decade low as rival <strong>Arm Holdings</strong> makes significant gains.</p>  <h2>Intel's market share hits historic low</h2> <p>Intel shares declined after a Citi research note published Wednesday highlighted a concerning trend for the chipmaker. The note revealed that Intel's share of chip shipments fell by more than 1.8% to 65.3% in the first quarter of 2025. That's the lowest level since Citi began modeling the industry in 2002.</p> <p>This drop in market share comes as Arm Holdings made substantial gains, expanding its share to 13.6% in the first quarter from 10.8% in the fourth quarter of 2024. <strong>Advanced Micro Devices</strong> also ceded market share, but the company's stock was less affected by the news after the company announced a $6 billion stock buyback.</p> <div><p><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MTgzMjUvZ2V0dHlpbWFnZXMtMTQ4MDkyNTExOC0xMjAweDgwMS1kMjFiNDVkLmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="467" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MTgzMjUvZ2V0dHlpbWFnZXMtMTQ4MDkyNTExOC0xMjAweDgwMS1kMjFiNDVkLmpwZyZ3PTcwMA"/></p><p>Image source: Getty Images.</p> </div> <h2>Structural shift continues</h2> <p>The data highlights a troubling trend for the already embattled Intel. Arm's ultra energy-efficient chip design has traditionally dominated the mobile market, but lagged far behind Intel in laptops, data centers, and other markets. This looks to be shifting, at least for the time being. Despite the concerning news, Citi maintained its neutral rating on Intel stock.</p> <p>I think a wait-and-see approach is valid here. I think Intel will eventually be able to turn the ship around, but it's far from guaranteed. How its new CEO handles the next year will speak volumes to its future.</p>                                                                            </div>

INTC

<p>Intel's stock fell 4.4% amid concerns over its declining market share, which hit a two-decade low of 65.3% in Q1 2025, according to a Citi research note. This decline comes as rival Arm Holdings increased its share to 13.6%. Despite the drop, Citi maintains a neutral rating on Intel, suggesting a wait-and-see approach as the new CEO's actions will be crucial for the company's future.</p>

- Intel's shares fell by 4.4% following a Citi research note indicating a decline in its market share to a two-decade low of 65.3% in Q1 2025.  
- The report highlighted that rival Arm Holdings increased its market share to 13.6%, while Advanced Micro Devices also lost ground but announced a $6 billion stock buyback.  
- Despite these challenges, Citi maintained a neutral rating on Intel, suggesting a cautious outlook as the company's new CEO navigates the upcoming year.  

Why Intel Stock Is Sinking Today