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Based in Santa Clara, California, Intel Corporation (INTC) is one of the world's largest semiconductor companies that designs, develops, manufactures, markets, and sells computing and related products and services. Valued at a market cap of almost $98.5 billion, the company offers microprocessor and chipset, stand-alone SoC, multichip package and various other semiconductor products.
Companies worth $10 billion or more are generally classified as “large-cap stocks,” and Intel fits the label perfectly, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the semiconductors industry. Intel's competitive edge comes from its advanced manufacturing, strong R&D investments, and dominance in data centers and PC processors. Its chip design and fabrication expertise, along with innovations like Intel 3 and Intel 18A, strengthen its position in the industry. The company is also expanding into AI, cloud computing, and foundry services, positioning itself for future growth.
Despite its notable strength, this tech giant is currently trading 51.2% below its 52-week high of $46.63, reached on Mar. 8, 2024. However, shares of Intel have gained 1.2% over the past three months, outpacing the broader Dow Jones Industrials Average’s ($DOWI) 3.4% decline during the same time frame.
In the longer term, Intel has declined 48.1% over the past 52 weeks, massively lagging behind DOWI’s 10.5% return. However, on a YTD basis, shares of Intel are up 13.4%, outpacing DOWI’s 1.5% rise over the same time frame.
To confirm its recent bullish trend, Intel has been trading above its 50-day moving average since mid-February. However, it has remained below its 200-day moving average since early April, 2024, despite some fluctuations.
On Mar. 3, shares of Intel fell 4.2% as investors had anticipated a potential partnership or deal between Intel's foundry business and Taiwan Semiconductor Manufacturing Company Limited(TSM), but no such announcement was made, leading to disappointment and a sell-off in Intel shares. Instead, TSMC and President Trump announced a $100 billion new investment in the U.S. semiconductor industry.
Moreover, the stock fell 2.9% following its Q4 earnings release on Jan. 30, despite beating expectations with an adjusted EPS of $0.13 and revenue of $14.3 billion. However, both figures saw sharp declines, with revenue down 7.4% and earnings plunging 75.9% year-over-year. The company continues to struggle with intense competition in the client computing and data center markets. Adding to investor concerns, its Q1 2025 guidance signals a further sequential revenue decline, reflecting macroeconomic uncertainty and seasonal weakness.
Yet, Intel has outpaced its rival Advanced Micro Devices, Inc. (AMD) which declined 51.5% over the past 52 weeks and 18.7% on a YTD basis.
Despite Intel’s recent outperformance relative to the Dow, analysts remain cautious about its prospects. The stock has a consensus rating of “Hold” from the 37 analysts covering it, and the mean price target of $24.24 suggests a slight 6.6% premium to its current levels.
