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Shares of Intel (NASDAQ:INTC) fell as much as 5.7% on Wednesday, its biggest intraday fall since April 25, after having closed nearly +8% on Tuesday.
As of 11:08 E.T. the stock was down about 4.63% to $21.08, poised to shed potentially $4B of market cap.
The American chipmaker’s stock hovered between $20.82 and $21.83. The volume today was around 54.16M, lower than the average volume of about 93.48M.
Year-to-date the stock has risen about 6% but in the past one year the shares have tumbled nearly 31%.
SA analysts are also divided on the stock.
“I maintain my ‘Buy’ rating on Intel, seeing recent recovery as insufficient given ongoing undervaluation and positive corporate changes,” said analyst Danil Sereda from Beyond the Wall Investing.
Of late, markets have shown signs of a renewed sense of hope in Intel’s direction under recently appointed CEO Lip-Bu Tan, according to SA analyst Uttam Dey. “The harsh reality is that the company faces a critical cash crunch, with only 12 months of liquidity left, forcing management to prioritize cost-cutting over growth,” said Dey.
Dey noted that Tan is focused on restructuring, including staff cuts and divestitures, to stabilize revenue per employee and restore gross margins above 50%.
Meanwhile, SA analyst Oliver Rodzianko believes that Intel’s current strategic decisions—especially guided by Tan — will help the company become great again. “As a result, the current low valuation is a fantastic buying opportunity,” said Rodzianko.
However, Rodzianko noted that despite his optimism, “Intel’s turnaround is a high-stakes battle of execution, facing financial hurdles, foundry challenges, and AI competition.”
SA analyst Bluesea Research said that Intel’s first quarter earnings call was a mixed bag as the company beat EPS and revenue estimate but gave a disappointing guidance for the second quarter. Bluesea Research added that over the last few weeks the stock has traded in a tight range and one of the reasons why we are not seeing further correction in Intel stock is that most of the headwinds are already priced in.
However, Bluesea Research noted that “Intel’s new leadership has not given a clear future strategy yet, and it needs to add at least one major customer for its foundry or AI business to improve Wall Street.”