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Santa Clara, California-based Intel Corporation (INTC) designs, develops, manufactures, markets, and sells computing and related products and services. With a market cap of $96.9 billion, Intel is known for its chips and processors. The company has employed over 120,300 people in 46 countries across the Americas, Indo-Pacific, and EMEA.
Companies worth $10 billion or more are generally described as "large-cap stocks," Intel fits this bill perfectly. Given the company’s long-standing name in the technology sector, its valuation above this mark is not surprising. Intel put the silicon in Silicon Valley for decades. For more than 50 years, Intel has profoundly influenced the world, driving business and society forward by creating radical innovation.
However, the chip giant has fallen from a lofty perch, with its stock trading 56.2% below its 52-week high of $51.28 achieved on Dec. 27, 2023. Although INTC stock has gained 11.8% over the past three months, it has lagged behind the Nasdaq Composite’s ($NASX) 13.7% surge over the same time frame.
Intel has significantly underperformed the Nasdaq Composite over the longer term as well. INTC stock prices have plummeted 55.3% in 2024 and 48.6% over the past 52 weeks compared to NASX’s surge of 29.8% on a YTD basis and 36.2% over the past year.
To confirm the overall bearish trend, Intel has traded consistently below its 200-day moving average since early April and below its 50-day moving average recently.
Intel’s underperformance is primarily driven by the continued decline of its topline and earnings in recent years. However, the INTC stock rose 7.8% in the trading session after the release of its Q3 results on Oct. 31 as the company’s revenues of $13.3 billion surpassed Wall Street’s expectations by a notable 2.1%. Nevertheless, its revenues have still dropped 6.2% compared to the year-ago quarter. While the company is focusing on reducing costs, simplifying its portfolio and improving organizational efficiency, it has still reported nearly $2 billion in adjusted net loss, which considerably missed analysts’ expectations.
Intel has substantially underperformed its rival Advanced Micro Devices, Inc.’s (AMD) 17% gains over the past 52-week period and its 3.7% dip in 2024.
Among the 36 analysts covering the INTC stock, the consensus rating is a “Hold.” The mean price target of $26.55 represents an 18.2% premium to current price levels.
