Intel (NASDAQ:INTC) Stock Falls 28.6% After Analyst Downgrade

Shares of Intel Corporation (NASDAQ:INTC) traded down 28.6% during trading on Friday after TD Cowen lowered their price target on the stock from $95.00 to $75.00. TD Cowen currently has a hold rating on the stock. Intel traded as low as $63.20 and last traded at $65.76. Approximately 449,000,373 shares traded hands during trading, an increase of 283% from the average daily volume of 117,135,336 shares. The stock had previously closed at $92.07.

A number of other research analysts have also recently commented on the company. Wells Fargo & Company cut their target price on Intel from $120.00 to $80.00 and set an “equal weight” rating on the stock in a research note on Friday. Evercore reissued an “outperform” rating and set a $133.00 price target on shares of Intel in a research note on Friday. Stifel Nicolaus set a $90.00 price objective on Intel in a report on Friday. Wall Street Zen downgraded shares of Intel from a “buy” rating to a “hold” rating in a research note on Saturday, August 8th. Finally, Zacks Research upgraded shares of Intel from a “hold” rating to a “strong-buy” rating in a report on Monday. Two analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, twenty-seven have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Intel currently has a consensus rating of “Hold” and a consensus target price of $98.73.

Insiders Place Their Bets

In other news, CEO Lip Bu Tan purchased 105,263 shares of the business’s stock in a transaction on Tuesday, August 11th. The shares were acquired at an average cost of $95.00 per share, with a total value of $9,999,985.00. Following the completion of the acquisition, the chief executive officer owned 1,314,669 shares of the company’s stock, valued at $124,893,555. This trade represents a 8.70% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 0.05% of the stock is currently owned by company insiders.

More Intel News

Here are the key news stories impacting Intel this week:

• Positive Sentiment: Intel reported third-quarter adjusted EPS of $0.52, ahead of the $0.41 consensus estimate, while revenue rose 21% year over year to $16.51 billion. Data Center and AI revenue increased 78% to $7.3 billion, and Intel Foundry revenue grew 58%. Intel Surpasses Q3 Earnings Estimates on Robust Data Center Demand
• Positive Sentiment: Intel agreed to acquire Israeli quantum-software startup Classiq Technologies for approximately $2.3 billion, targeting a full-stack quantum-computing business. The transaction is expected to close in the first half of 2027, although it adds to concerns about near-term spending. Intel Agreed to Buy Israeli Startup Classiq Technologies
• Neutral Sentiment: KGI Securities upgraded Intel to “outperform” with a $95 price target, but most recent analyst actions were more cautious. Wall Street’s targets remain materially above the current trading level, indicating potential upside if Intel executes its turnaround.
• Negative Sentiment: Intel forecast fourth-quarter revenue of $15 billion to $16 billion and adjusted EPS of $0.25, well below analysts’ expectations of roughly $17.3 billion in revenue and $0.45 EPS. Management said the PC slowdown arrived sooner and was deeper than expected and could continue through at least the first half of 2027. Intel Shares Tumble on Lower Profit, Weak Guidance
• Negative Sentiment: AI-related demand is consuming chip capacity needed for PCs, while memory, wafer and substrate shortages are increasing costs and pushing PC prices higher. Investors are concerned that stronger server growth will not offset weakness in Client Computing, where revenue fell 5% in the third quarter.
• Negative Sentiment: A blast at Intel’s Israel facility is expected to reduce revenue by about $600 million, with the ultimate insurance and production impact still uncertain. Analysts including Bank of America, Wells Fargo, DA Davidson, Truist and Roth Capital lowered targets or moved to neutral/hold ratings, citing weaker demand, manufacturing constraints, heavy investment and possible negative free cash flow. Intel Warning Sparks Chip Rout as PC Weakness Clouds Turnaround

Institutional Trading of Intel

A number of institutional investors have recently made changes to their positions in the business. Southern Financial Group LLC lifted its stake in shares of Intel by 0.6% during the first quarter. Southern Financial Group LLC now owns 14,313 shares of the chip maker’s stock worth $632,000 after buying an additional 90 shares during the period. Harrell Investment Partners LLC grew its position in Intel by 0.4% during the second quarter. Harrell Investment Partners LLC now owns 23,277 shares of the chip maker’s stock valued at $3,250,000 after buying an additional 100 shares during the period. TFR Capital LLC. grew its position in shares of Intel by 0.4% during the 2nd quarter. TFR Capital LLC. now owns 26,643 shares of the chip maker’s stock valued at $3,720,000 after acquiring an additional 100 shares during the period. Walker Asset Management LLC increased its position in shares of Intel by 1.9% in the third quarter. Walker Asset Management LLC now owns 5,433 shares of the chip maker’s stock valued at $653,000 after buying an additional 100 shares in the last quarter. Finally, Wynn Capital LLC raised its position in Intel by 0.4% during the second quarter. Wynn Capital LLC now owns 27,162 shares of the chip maker’s stock worth $3,793,000 after acquiring an additional 104 shares during the period. Institutional investors and hedge funds own 64.53% of the company’s stock.

Intel Price Performance

The stock has a market capitalization of $331.69 billion, a PE ratio of -31.17, a price-to-earnings-growth ratio of 10.14 and a beta of 2.22. The stock’s 50 day moving average is $101.63 and its two-hundred day moving average is $86.25. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.25 and a current ratio of 1.60.

Intel (NASDAQ:INTC) last issued its quarterly earnings results on Thursday, October 29th. The chip maker reported $0.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.41 by $0.11. The firm had revenue of $16.51 billion for the quarter, compared to analyst estimates of $16.56 billion. Intel had a positive return on equity of 2.62% and a negative net margin of 19.79%. The business’s revenue was up 20.9% on a year-over-year basis. During the same period in the previous year, the company posted $0.23 earnings per share. On average, equities analysts anticipate that Intel Corporation will post 1.05 EPS for the current fiscal year.

About Intel

Intel Corporation (NASDAQ:INTC) is a global semiconductor company that designs and manufactures computing and connectivity products. Its portfolio includes Intel Core processors for personal computers, Xeon processors for data centers and enterprise systems, and products for networking, edge computing, graphics, and artificial intelligence workloads.

Through Intel Foundry, the company also provides semiconductor manufacturing and technology-development services for external customers. Intel develops process technologies, advanced packaging, and other manufacturing capabilities intended to support its own products and third-party chip designs.

Founded in 1968 by Robert Noyce and Gordon Moore, Intel helped establish the modern microprocessor industry and has historically supplied processors for PCs, servers, and other computing systems.