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Intel Corporation (INTC), headquartered in Santa Clara, California, is a dominant force in the global semiconductor market, with a market cap of $128.3 billion. The company focuses on designing and producing a broad spectrum of computing and associated products, such as microprocessors, chipsets, and advanced driver assistance systems (ADAS) for autonomous vehicles.
Intel stock has considerably underperformed the broader market over the past 52 weeks. INTC has plunged 16.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 20.5%. In 2024, shares of Intel are down 38.8%, compared to SPX's 15.8% gains on a YTD basis.
Zooming in further, INTC also lags behind the S&P Semiconductor SPDR's (XSD) 7% gains over the past 52 weeks.
Intel's stock fell 3.8% on Jul. 24 due to broader tech sector sell-offs following earnings reports from leading tech companies. Investors are now awaiting Intel's fiscal Q2 earnings release on August 1, looking for signs of improvement in its core business and AI advancements.
Moreover, the stock dipped 5.4% on Jul. 19 amid a massive global IT outage caused by a faulty software update from cybersecurity provider CrowdStrike Holdings, Inc (CRWD). Although Intel's hardware was not directly responsible, the issue indirectly affected the company's stock.
For the current fiscal year, ending in December, analysts expect INTC’s EPS to decline 81.6% to $0.07. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on one other occasion.
The consensus rating among the 34 analysts covering INTC stock is "Hold," based on four "Strong Buy" ratings, two "Moderate Buys," 25 "Hold" ratings, and three "Strong Sells."
This configuration has been consistent over the past months.
On July 17, Cantor Fitzgerald analyst C J Muse maintained a “Hold” rating on Intel stock with a target price of $40.
The mean price target of $39.76 represents a premium of 29.3% to INTC's current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
