Intel Faces Challenges Amid Stock Decline and Market Competition
Intel Corporation (INTC), headquartered in Santa Clara, California, has long been a giant in the computing industry. With a market capitalization of $96.9 billion, the company is well-known for its chips and processors. Currently, Intel employs over 120,300 people across 46 countries, spanning the Americas, Indo-Pacific, and EMEA regions.
The Legacy of a Tech Pioneer
As a large-cap stock, Intel is a staple in the technology sector. Its standing as a reputable name is secured; for over 50 years, Intel has played a significant role in shaping technological advancements and economic growth. However, the company is now navigating a challenging financial landscape.
Struggles with Stock Performance
Intel’s stock is currently trading 56.2% below its 52-week high of $51.28, which it reached on December 27, 2023. Although INTC’s stock has gained 11.8% in the last three months, this still falls short of the Nasdaq Composite’s ($NASX) 13.7% growth during the same period.
Looking back, Intel has underperformed the Nasdaq Composite over the long term as well. The company’s stock has dropped 55.3% in 2024 and 48.6% over the past year, while the NASX has seen increases of 29.8% year-to-date and 36.2% over the last year. Evidence of a bearish trend is apparent; Intel’s stock has consistently traded below its 200-day moving average since early April, and it has recently dipped below its 50-day moving average.
Financial Performance and Outlook
Intel’s financial struggles are largely due to declining revenues and earnings. However, after releasing its Q3 results on October 31, INTC’s stock rose 7.8% as the company reported revenues of $13.3 billion, exceeding Wall Street’s expectations by 2.1%. Still, this was a 6.2% drop compared to the same quarter last year. While Intel is making efforts to streamline operations and cut costs, it recorded nearly $2 billion in adjusted net losses, significantly missing analysts’ forecasts.
When considering competition, Intel has notably lagged behind rival Advanced Micro Devices, Inc. (AMD), which has gained 17% over the past year, despite a 3.7% decline in 2024.
Analyst Perspectives
Consensus among the 36 analysts monitoring INTC stock indicates a “Hold” rating. The average price target stands at $26.55, suggesting an 18.2% premium compared to current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data provided are for informational purposes only. For more details, please refer to the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
