Intel’s Stock Plunge: What’s Behind the Drop?

Intel ( (INTC) ) has fallen by -11.01%. Read on to learn why.

Intel’s stock has experienced a significant decline of 11.01% over the past week, largely due to mixed financial results and ongoing concerns about its market position. The company’s recent earnings report revealed higher-than-expected revenue but missed earnings per share estimates due to restructuring costs. This has left investors worried about Intel’s ability to regain market share from competitors like AMD, especially as analysts suggest that the revenue boost may have been temporary, driven by customers rushing to buy chips ahead of potential tariffs.

Further compounding Intel’s challenges are its strategic shifts in manufacturing and potential future margins. Intel announced it would not proceed with its next-generation 14A node without securing a large external customer, indicating a possible shift towards a more fabless model. Analysts from J.P. Morgan and Morgan Stanley have expressed concerns about Intel’s future market share and margins, citing ongoing costs from the 18A process and Lunar Lake chip rollout. Despite some positive signs noted by KeyBanc, the overall sentiment remains cautious, with many analysts maintaining a Hold rating on the stock.

Adding to Intel’s woes is the skepticism surrounding its future growth prospects under new CEO Lip-Bu Tan. While Tan has made bold moves to cut costs and streamline operations, analysts like Stone Fox Capital remain unconvinced about a quick turnaround. The company’s struggles in its foundry segment and challenges in the AI market, where it lags behind competitors like NVIDIA, further dampen investor confidence. As a result, Intel’s stock is currently rated as a Hold by most analysts, with a consensus that any significant recovery may take time.