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Santa Clara, California-based Intel Corporation (INTC) designs, develops, manufactures, markets, and sells computing and related products and services worldwide. Valued at $84.5 billion by market cap, the company's major products include microprocessors, chipsets, embedded processors and microcontrollers, flash memory, graphics, network and communication, systems management software, conferencing, and digital imaging products.
Shares of this leading chipmaker have underperformed the broader market over the past year. INTC has declined 33.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 14.5%. In 2025, INTC’s stock fell 3.7% compared to the SPX’s 6.1% rise on a YTD basis.
Narrowing the focus, INTC’s underperformance is also apparent compared to the SPDR S&P Semiconductor ETF (XSD). The exchange-traded fund has gained about 15.5% over the past year. Moreover, the ETF’s 5.3% gains on a YTD basis outshine the stock’s losses over the same time frame.
Intel's underperformance stems from its slower adoption of AI trends compared to competitors, as well as margin impacts from restructuring efforts aimed at driving efficiency, agility, and profitable growth.
On Jul. 25, INTC shares closed down more than 8% after reporting its Q2 results. Its adjusted loss of $0.10 per share fell short of Wall Street’s earnings expectations of $0.01 per share. The company’s revenue was $12.9 billion, beating Wall Street forecasts of $11.9 billion. For Q3, INTC expects revenue in the range of $12.6 billion to $13.6 billion.
For the current fiscal year, ending in December, analysts expect INTC’s loss per share to grow 52.9% to $0.40 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
Among the 39 analysts covering INTC stock, the consensus is a “Hold.” That’s based on one “Strong Buy” rating, 33 “Holds,” and five “Strong Sells.”
The configuration has been reasonably stable over the past three months.
On Jul. 29, Morgan Stanley (MS) analyst Joseph Moore maintained a “Hold” rating on INTC with a price target of $23, implying a potential upside of 19.1% from current levels.
The mean price target of $23.02 represents a 19.2% premium to INTC’s current price levels. The Street-high price target of $62 suggests an ambitious upside potential of 221.1%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
