Quick Read
-
Intel (INTC) closed at $60, down 58% from its June peak of $142, wiping out roughly $430 billion in market value.
-
CFO David Zinsner warned the PC slowdown will continue "at least through the first half of next year," overshadowing a 21% revenue gain.
-
Intel trades at 43x forward earnings with no free cash flow expected next year, while NVIDIA (NVDA) trades at 17x with 117% data center growth.
-
Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and Intel didn't make the cut. Enter your email to see the names that beat INTC. The report is free. Enter your email and see if any of your stocks made the cut.
In about 10 months, this stock multiplied several times over, and it has since given back more than half of that value since late June. Intel( NASDAQ:INTC ) closed Monday at $59.97, down $5.79, or 8.80%, after reaching an intraday low of $59.40.
That was its first close under $60 since April 8, when shares finished at $58.95, and its lowest close since that day. About 231 million shares traded, the market value ended at $318.74 billion, and the stock was quoted at $60.57 after hours.
The average analyst price target is $101.02, roughly 68.5% upside from Monday's close. Such a wide gap means the Street and the market sharply disagree about Intel's next year.
Analysts are focused on a fast-growing data center business. The market is pricing in a PC slump, a weak fourth-quarter outlook, and a foundry that still has no major customer for its most advanced chips. For now, I think the market has the stronger case.
Two Peaks and a Drawdown Past 57%
Intel hit its 52-week intraday high of $142.35 on June 30, and its record close of $140.94 came on June 22. Monday's close is 57.9% below the first and 57.5% below the second.
Free Report, Just Released
Why Didn't INTC Make The Top 10 List?
24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now . Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now.
And INTC didn't make the cut!
The report is free, and you can see why we think each stock is a top investment today.
Enter Your Email and See the Ten →
The stock had already lost more than half its value by Friday's close of $65.76, 53.3% below the record. On Monday, it broke below $60.
With about 5.31 billion shares outstanding today, the decline wiped out roughly $430 billion of market value from the record close and about $438 billion from the intraday high. Both numbers are estimates, because the share count at the peak may have been different.
The drop also happened fast. Shares fell 37.2% in three sessions from the October 28 close of $95.53, and the price has halved from $120.23 on September 30.
Friday's 28.58% plunge was reported as the stock's worst day since the 1970s. October's 45% decline was reported as its steepest monthly drop on record. Monday's slide reflected continuing impact from the outlook.
Why a Weak Outlook Outweighed a Strong Quarter
Third-quarter revenue grew 21% to $16.5 billion, and non-GAAP EPS came in at $0.52. Investors cared more about what Intel said comes next.
Fourth-quarter revenue guidance of $15.0 billion to $16.0 billion fell short of the roughly $17.1 billion analysts expected. Guidance for $0.25 of EPS was well below the 43 cents estimate.
The gross margin guide of 38.0% compares with 44.1% last quarter. Fixed factory costs are now spread across fewer client wafers, and the fastest-growing product line, purpose-built silicon, has lower margins.
CFO David Zinsner was blunt. He said, "Looking ahead, we see the PC slowdown continuing at least through the first half of next year."
Data Center Growth Collides With Foundry Costs
Data center revenue grew 78% to $7.3 billion. CEO Lip-Bu Tan said, "Our immediate priority is to unlock additional supply to meet extraordinary demand for our Xeon family."
PCs still make up roughly half of revenue, though, and supply limits restrict how quickly Xeon can close the gap. Over five years, Intel has spent about $108 billion on capital expenditures to compete with TSMC in foundry, yet it has no major customer for its leading-edge chips.
David Yoffie, a former Intel board member, said, "The right solution is for Intel to spin off the foundry business." An Intel spokesperson said, "customer confidence in Intel Foundry is built on execution," and Tan has said a couple of foundry customers will be announced within the next two quarters.
Government Backing Has Not Stopped the Slide
Intel is still up 62.5% from its 2025 close of $36.90, while the S&P 500 has gained 10.3% this year. It also sits about 82% above its 52-week low of $32.89.
The Commerce Department bought 433,323,000 shares at about $20.47, for a reported stake of 9.9%. That position is now worth about $26 billion, or roughly 2.9 times its cost, so Washington has little reason to support the share price.
Other high fliers have fallen too. Arm( NASDAQ:ARM ) is 56.5% below its 52-week high, Oracle( NYSE:ORCL ) is 55.1% below its high, and SanDisk is 54.3% below its high.
Wall Street remains cautious. Analysts have 1 Strong Buy, 14 Buy, 32 Hold, 1 Sell, and 1 Strong Sell rating on the stock, and price targets are no guarantee.
What Intel Needs to Justify the Analyst Target
This optimistic scenario works only if named foundry customers arrive on schedule, margins recover from the 38% guide, and PC demand steadies by mid-2027. If all three happen, the $101.02 target is within reach.
Right now, though, Intel trades at about 43 times forward earnings. Zinsner also said that next year will "probably not" bring positive free cash flow.
Intel's near-term risks outweigh the upside implied by the average target. By contrast, NVIDIA( NASDAQ:NVDA ) trades at about 17 times forward earnings, with data center growth of 117%.
AMD( NASDAQ:AMD ) reports on Tuesday, November 3. Its results should show whether Intel's PC and supply problems are industry-wide or specific to Intel.
Got $1,000? Before You Buy INTC, Read This
If you have cash sitting in your account right now, give this two minutes. After more than two decades of helping investors beat the market, our top analysts at 24/7 Wall St. put together a definitive report on the Top 10 Stocks To Buy Today. And INTC wasn't one of them.
They combed the entire market. It's not 10 ideas, not 10 stocks everyone is talking about, it's what their research points to as the 10 best stocks to buy right now, and it's free. Read more here and see which stocks made the list -->>
Contact editorial@247wallst.com for any questions or corrections.
