Intel Stock Plunges 14% After Weak Guidance and Supply Shortage Warning
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Newsfilter
- Weak Earnings Outlook: Intel's guidance indicates first-quarter revenue between $11.7 billion and $12.7 billion, with breakeven adjusted earnings per share, falling short of market expectations of $12.51 billion and 5 cents, highlighting significant challenges ahead for the company.
- Supply Shortage Warning: CEO Lip-Bu Tan stated that production efficiency is below targets, and the company cannot meet full product demand, suggesting a multi-year journey to restore production capabilities that may impact future market competitiveness.
- Investor Focus: Despite Intel's stock more than doubling over the past year due to investments from the U.S. government, SoftBank, and Nvidia, investors are still seeking clear progress on foundry customers as the next catalyst for stock growth.
- Increased Competitive Pressure: Analysts warn that Intel's foundry business has long underperformed, with significant revenue contributions from 14A technology customers not expected until late 2028, raising further concerns about the company's future growth trajectory.
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.
