Intel Corporation’s Stock Price Slips to $38.71, Marking a 2.57% Decline: Is it a Buying Opportunity?

Intel Corporation (INTC)

38.71 USD -1.02 (-2.57%) Volume: 66.5M

Intel Corporation’s stock price stands at 38.71 USD, witnessing a drop of 2.57% during the current trading session with a trading volume of 66.5M. Year-to-Date, the tech giant’s stock has seen a significant decline of 22.97%, reflecting its volatile market performance.

Latest developments on Intel Corporation

Intel Corp‘s stock has been underperforming in the market recently, with the company confirming layoffs in its Sales and Marketing Group and insiders placing bullish bets worth US$3.50m. The chipmaker’s foundry business reported a hefty $7 billion operating loss in fiscal 2023, causing shares to fall. Moreover, Intel’s recent financial results reveal a significant downturn, with the company expected to continue losing money on its foundry business in 2024. Despite this, unusual call option trades show keen investor interest in Intel’s potential upside.

Intel Corporation on Smartkarma

Intel Corp, a leading technology company, has recently been under the spotlight on Smartkarma, an independent investment research network. William Keating, a top independent analyst, published a bearish report on the company’s new segment reporting structure. According to the report, Intel’s newly created Foundry P&L has incurred significant operating losses of around $17 billion over the past three years and is not expected to reach breakeven until 2027 or 2028. This news has caused Intel’s share price to drop by more than 10% in just two days since the announcement.

In another report, Keating highlights the potential delays in Intel’s new fab projects in Ohio and Arizona, which could impact the company’s supply chain. The report also mentions the awkward situation of these delays overshadowing Intel’s recent funding of $8.5 billion from the CHIPS Act. Despite this setback, Intel’s CEO, Pat Gelsinger, remains optimistic and has hinted at a partnership with OpenAI during the company’s Foundry Day event.

On the other hand, Business Breakdowns, a podcast series on Smartkarma, takes a bullish stance on Intel’s future. In the latest episode, Todd Austin, CIO of Parnassus Investments, discusses Intel’s decline and the factors that led to it. He believes that Intel’s recent progress in AI and the cloud, along with its IDM 2.0 transformation, could lead to a cyclical recovery for the company.

Another bullish report on Smartkarma, by Baptista Research, highlights Intel’s solid advances in AI and the cloud as major drivers for its growth. The company’s revenue has exceeded expectations for the fourth consecutive quarter, showcasing its effective execution of its IDM 2.0 strategy. With a focus on driving operating leverage and managing expenses, Intel is on track to meet its cost savings commitment for the fiscal year 2023.

A look at Intel Corporation Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

According to Smartkarma’s Smart Scores, Intel Corp has a bright long-term outlook. The company scores highly in the categories of value, dividend, and resilience, with scores of 4, 3, and 3 respectively. This indicates that Intel Corp is a strong and stable company with good financial health, making it a solid investment option for those looking for long-term growth.

While the company scores lower in the categories of growth and momentum, with scores of 2 and 3 respectively, this does not necessarily indicate a negative outlook. Instead, it suggests that Intel Corp may not see rapid growth in the short term, but is still a reliable and steady performer in the long run. This is supported by the company’s diverse range of products, which include microprocessors, chipsets, and digital imaging products, making it well-positioned to adapt to changing market trends and maintain its strong position in the industry.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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