Intel (INTC) Reports Disappointing Q1 Guidance, Shares Plunge 16%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Yahoo Finance
- Intel's Earnings Decline: Intel's disappointing Q1 guidance led to a more than 16% drop in shares on Friday, highlighting the company's struggles to meet demand for AI data center server chips, which could impact its market share and investor confidence.
- Market Reaction Tepid: The Dow Jones Industrial Average fell approximately 0.7%, the S&P 500 hovered around the flat line, and the Nasdaq Composite rose 0.3%, reflecting investor caution regarding market outlook amid heightened uncertainty over Trump's trade policies.
- Consumer Confidence Slightly Up: The University of Michigan's consumer sentiment index reached 56.4 in January, slightly above December's 52.9, although overall sentiment remains over 20% lower than a year ago, indicating cautious optimism among consumers regarding economic prospects.
- Capital Outflows Intensify: Data from Bank of America revealed that investors pulled nearly $17 billion from US stocks this week amid Trump's threats of tariffs on Europe, reflecting concerns over geopolitical risks and a trend of capital inflows into emerging markets.
Analyst Views on INTC
Wall Street analysts forecast INTC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for INTC is 39.30 USD with a low forecast of 20.00 USD and a high forecast of 52.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
29 Analyst Rating
5 Buy
19 Hold
5 Sell
Hold
Current: 54.320
Low
20.00
Averages
39.30
High
52.00
Current: 54.320
Low
20.00
Averages
39.30
High
52.00
About INTC
Intel Corporation is a global designer and manufacturer of semiconductor products. The Company operates through three segments: Intel Products, Intel Foundry, and All Other. Its Intel Products segment includes Client Computing Group (CCG), Data Center and AI (DCAI), Network and Edge (NEX). The CCG is bringing together the operating system, system architecture, hardware, and software application integration to enable PC experiences. DCAI delivers workload-optimized solutions to cloud service providers and enterprises, along with silicon devices for communications service providers, network and edge, and HPC customers. NEX helps networks and edge compute systems from fixed-function hardware to general-purpose compute, acceleration, and networking devices running cloud native software on programmable hardware. The Intel Foundry segment comprises technology development, manufacturing and foundry services. All Other segments include Altera, Mobileye, Other.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
