Intel (NASDAQ:INTC) Stock Gets Downgrade from Roth Capital

Key Points

• Roth Capital downgraded Intel from “buy” to “neutral” and cut its price target from $120 to $70, implying roughly 24% downside from the reported share price.
• Analyst sentiment is mixed but leans cautious: Intel has a consensus “hold” rating and an average price target of $104.01, with multiple firms recently reducing their targets.
• Intel beat quarterly EPS estimates and reported 21% year-over-year revenue growth, but its weaker-than-expected fourth-quarter outlook, prolonged PC slowdown and foundry execution risks continue to weigh on the turnaround story.

Intel (NASDAQ:INTC - Get Free Report) was downgraded by investment analysts at Roth Capital from a "buy" rating to a "neutral" rating in a research note issued to investors on Friday, Marketbeat reports. They presently have a $70.00 price target on the chip maker's stock, down from their previous price target of $120.00. Roth Capital's price target points to a potential downside of 23.97% from the company's current price.

Several other research firms also recently commented on INTC. Stifel Nicolaus reduced their price objective on Intel from $120.00 to $110.00 and set a "hold" rating for the company in a research note on Friday, July 24th. Bank of America lowered their price objective on shares of Intel from $160.00 to $145.00 and set a "buy" rating on the stock in a research report on Wednesday, August 12th. Susquehanna dropped their price objective on shares of Intel from $115.00 to $105.00 and set a "neutral" rating on the stock in a research note on Wednesday, October 21st. Zacks Research upgraded shares of Intel from a "hold" rating to a "strong-buy" rating in a research report on Monday. Finally, Truist Financial lifted their target price on shares of Intel from $81.00 to $108.00 and gave the company a "hold" rating in a report on Friday, July 24th. Two research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating, twenty-seven have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $104.01.

Intel Stock Down 3.6%

Shares of NASDAQ:INTC opened at $92.07 on Friday. Intel has a 1-year low of $32.89 and a 1-year high of $142.35. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.60 and a quick ratio of 1.25. The stock has a market cap of $464.40 billion, a P/E ratio of -43.63, a P/E/G ratio of 10.14 and a beta of 2.22. The firm has a fifty day moving average price of $101.63 and a 200 day moving average price of $86.25.

Intel (NASDAQ:INTC - Get Free Report) last posted its quarterly earnings data on Thursday, October 29th. The chip maker reported $0.52 EPS for the quarter, beating analysts' consensus estimates of $0.41 by $0.11. Intel had a negative net margin of 19.79% and a positive return on equity of 2.62%. The company had revenue of $16.51 billion for the quarter, compared to analyst estimates of $16.56 billion. During the same period in the previous year, the business posted $0.23 earnings per share. Intel's quarterly revenue was up 20.9% on a year-over-year basis. Sell-side analysts predict that Intel will post 1.05 EPS for the current year.

Insiders Place Their Bets

In other Intel news, CEO Lip Bu Tan acquired 105,263 shares of the business's stock in a transaction on Tuesday, August 11th. The stock was purchased at an average price of $95.00 per share, for a total transaction of $9,999,985.00. Following the completion of the transaction, the chief executive officer owned 1,314,669 shares of the company's stock, valued at $124,893,555. The trade was a 8.70% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.05% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Intel

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Primecap Management Co. CA acquired a new stake in Intel in the 2nd quarter valued at about $10,507,291,000. Legal & General Group Plc acquired a new position in shares of Intel during the 2nd quarter worth approximately $4,096,110,000. Assenagon Asset Management S.A. raised its position in shares of Intel by 87.1% during the 3rd quarter. Assenagon Asset Management S.A. now owns 30,214,769 shares of the chip maker's stock worth $3,632,722,000 after purchasing an additional 14,063,302 shares during the last quarter. Canada Pension Plan Investment Board acquired a new position in shares of Intel during the 2nd quarter worth approximately $1,848,438,000. Finally, Bank of America Corp DE lifted its stake in Intel by 35.7% in the 2nd quarter. Bank of America Corp DE now owns 31,724,362 shares of the chip maker's stock valued at $4,429,673,000 after buying an additional 8,342,514 shares in the last quarter. 64.53% of the stock is owned by institutional investors and hedge funds.

More Intel News

Here are the key news stories impacting Intel this week:

• Positive Sentiment: Intel reported third-quarter adjusted earnings of $0.52 per share, above the roughly $0.40–$0.41 consensus, while revenue rose 21% year over year to $16.5 billion. Data Center and AI revenue surged 78% to $7.3 billion, and Intel Foundry revenue increased 58%. Intel Q3 Revenue Rises 21% to $16.5 Billion
• Positive Sentiment: CEO Lip-Bu Tan said AI agents could expand the server CPU market toward $200 billion, offering a potential long-term growth opportunity despite current execution challenges. Intel Server CPU Market Outlook
• Neutral Sentiment: Intel’s turnaround remains dependent on converting strong AI and data-center demand into reliable supply, while its costly foundry expansion continues to require substantial investment. Intel PC Slowdown and Foundry Risks
• Negative Sentiment: Intel guided for fourth-quarter revenue of $15 billion to $16 billion and adjusted EPS of about $0.25, well below analyst expectations of approximately $17.3 billion in revenue and $0.45 EPS. The outlook also implies lower margins and earnings than in the third quarter. Intel Shares Tumble on Weak Guidance
• Negative Sentiment: Management said the PC slowdown arrived sooner and was deeper than expected and could persist through at least the first half of next year. Higher memory prices and constrained corporate laptop budgets are adding pressure to client-computing demand. Intel Blames PC Slowdown for Weak Guidance
• Negative Sentiment: A factory explosion in Israel and manufacturing bottlenecks are creating additional supply and execution risks. Analysts responded by cutting EPS estimates, downgrading Intel, and reducing price targets, with Bank of America lowering its target from $145 to $100. Analyst Cuts Intel Price Target
• Negative Sentiment: The disappointing forecast triggered broader semiconductor weakness, weighing on AMD, Dell, HP and other chip-related stocks as investors reassessed PC demand and the cost of AI infrastructure. Intel Results Pressure Technology Stocks

About Intel

Intel Corporation NASDAQ: INTC is a global semiconductor company that designs and manufactures computing and connectivity products. Its portfolio includes Intel Core processors for personal computers, Xeon processors for data centers and enterprise systems, and products for networking, edge computing, graphics, and artificial intelligence workloads.

Through Intel Foundry, the company also provides semiconductor manufacturing and technology-development services for external customers. Intel develops process technologies, advanced packaging, and other manufacturing capabilities intended to support its own products and third-party chip designs.

Founded in 1968 by Robert Noyce and Gordon Moore, Intel helped establish the modern microprocessor industry and has historically supplied processors for PCs, servers, and other computing systems.

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