Intel (NASDAQ:INTC) Stock Rating Lowered by Bank of America

Key Points

• Bank of America downgraded Intel from “buy” to “neutral” and cut its price target from $145 to $100, citing execution and supply concerns.
• Intel’s third-quarter results beat earnings expectations, with revenue rising 20.9% year over year to $16.51 billion, but analysts remain cautious: the consensus rating is “hold” with an average target of $104.01.
• Weak fourth-quarter guidance, a deeper-than-expected PC slowdown, manufacturing bottlenecks and costly foundry investments continue to weigh on the company’s turnaround prospects.

Intel (NASDAQ:INTC - Get Free Report) was downgraded by Bank of America from a "buy" rating to a "neutral" rating in a research note issued on Friday, MarketBeat Ratings reports. They presently have a $100.00 target price on the chip maker's stock, down from their previous target price of $145.00. Bank of America's price target points to a potential upside of 8.61% from the stock's previous close.

A number of other research firms have also recently weighed in on INTC. Weiss Ratings cut Intel from a "hold (c-)" rating to a "sell (d)" rating in a report on Friday, October 23rd. Stifel Nicolaus decreased their target price on Intel from $120.00 to $110.00 and set a "hold" rating on the stock in a report on Friday, July 24th. JPMorgan Chase & Co. upgraded Intel from an "underweight" rating to a "neutral" rating and set a $85.00 target price for the company in a research note on Monday, October 19th. Morgan Stanley set a $85.00 price target on Intel in a report on Monday, October 19th. Finally, Daiwa Securities Group downgraded shares of Intel from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 4th. Two research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, twenty-seven have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, Intel presently has an average rating of "Hold" and a consensus target price of $104.01.

Intel Price Performance

Shares of Intel stock opened at $92.07 on Friday. The company has a current ratio of 1.60, a quick ratio of 1.25 and a debt-to-equity ratio of 0.47. The stock has a market capitalization of $464.40 billion, a price-to-earnings ratio of -43.63, a P/E/G ratio of 10.14 and a beta of 2.22. Intel has a 1-year low of $32.89 and a 1-year high of $142.35. The firm's 50-day moving average price is $101.63 and its two-hundred day moving average price is $86.25.

Intel (NASDAQ:INTC - Get Free Report) last posted its quarterly earnings data on Thursday, October 29th. The chip maker reported $0.52 earnings per share for the quarter, topping the consensus estimate 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 during the quarter, compared to analyst estimates of $16.56 billion. During the same quarter last year, the business posted $0.23 earnings per share. The company's revenue was up 20.9% on a year-over-year basis. On average, equities analysts predict that Intel will post 1.05 earnings per share for the current fiscal year.

Insider Buying and Selling at Intel

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

Institutional Investors Weigh In On Intel

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. ABS Investment Management LLC acquired a new position in shares of Intel during the second quarter worth about $694,101,000. Montgomery Financial Services LLC bought a new stake in Intel in the 2nd quarter valued at approximately $26,000. Knuff & Co LLC acquired a new position in Intel during the 2nd quarter worth approximately $29,000. Glynn Capital Management LLC acquired a new position in Intel during the 2nd quarter worth approximately $29,000. Finally, Next Level Wealth Planning LLC bought a new position in shares of Intel during the 3rd quarter worth approximately $28,000. 64.53% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Intel

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

Intel Company Profile

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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