Intel (NASDAQ:INTC) Stock Falls 3.2% - Should You Sell?

Key Points

• Intel shares fell 3.2% to $112.50 amid concerns that TSMC’s potential involvement in Elon Musk’s Terafab project could intensify competition and undermine Intel’s foundry turnaround.
• There are some positive developments: Mizuho raised its price target to $114, and Intel partnered with Applied Materials on advanced chipmaking technologies aimed at AI computing. However, the benefits are largely longer term.
• Wall Street’s overall view remains cautious, with an average rating of “Hold” and an average price target of $109.06, despite Intel reporting better-than-expected quarterly earnings and revenue growth.

Intel Corporation (NASDAQ:INTC - Get Free Report) was down 3.2% on Tuesday. The company traded as low as $112.00 and last traded at $112.50. 100,724,141 shares traded hands during trading, a decline of 14% from the average session volume of 116,989,313 shares. The stock had previously closed at $116.19.

Trending Headlines about Intel

Here are the key news stories impacting Intel this week:

• Positive Sentiment: Mizuho raised its Intel price target from $92 to $114 while maintaining a neutral rating. The increase reflects stronger expected CPU demand, although the new target offers minimal upside and therefore provides only limited support for the shares. Intel Stock Price Target Raised at Mizuho
• Positive Sentiment: Intel and Applied Materials announced a collaboration on next-generation chipmaking. Work at Applied Materials’ EPIC Center and Intel’s Oregon research campus will target advanced transistors, interconnects and packaging for AI computing. The partnership could help Intel accelerate process development and improve its foundry competitiveness, though financial benefits are longer term. Applied Materials and Intel Collaboration
• Neutral Sentiment: Industry research projects substantial growth in embedded systems. The market is forecast to expand from $111.3 billion in 2025 to $182.3 billion by 2032, driven by AI, IoT and 5G. Intel is listed among the key suppliers, but the report does not announce new company-specific revenue or contracts. Embedded Systems Global Strategic Business Report
• Negative Sentiment: Potential TSMC involvement in Musk’s Terafab project remains the dominant overhang. Elon Musk confirmed preliminary discussions with TSMC, raising the possibility that Intel could lose exclusivity or face a stronger manufacturing rival in a high-profile AI-chip venture. The news has increased skepticism around Intel’s foundry turnaround and contributed to the stock’s decline. Intel Shares Fall as TSMC Discusses Potential Terafab Collaboration
• Negative Sentiment: Investors are questioning whether Intel’s recent rally has outpaced its fundamentals. Commentary highlights the wide gap between bullish and bearish outcomes for the foundry business, while comparisons with AMD and other AI-chip leaders emphasize Intel’s execution and valuation risks. Intel’s Biggest Opportunity May Be Its Comeback

Wall Street Analyst Weigh In

A number of analysts have issued reports on the stock. KeyCorp set a $125.00 price target on shares of Intel in a research note on Friday, July 24th. Rosenblatt Securities boosted their target price on Intel from $65.00 to $80.00 and gave the company a "sell" rating in a report on Friday, July 24th. Bank of America reduced their price objective on Intel from $160.00 to $145.00 and set a "buy" rating for the company in a research note on Wednesday, August 12th. Pivotal Research started coverage on shares of Intel in a research note on Tuesday, September 8th. They issued a "buy" rating for the company. Finally, New Street Research raised their price objective on shares of Intel from $100.00 to $122.00 in a research report on Friday, June 26th. One research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, twenty-six have assigned a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $109.06.

Intel Trading Down 3.2%

The firm has a market capitalization of $567.45 billion, a price-to-earnings ratio of -53.32, a P/E/G ratio of 12.73 and a beta of 2.22. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.25 and a current ratio of 1.60. The business has a fifty day moving average price of $101.43 and a 200 day moving average price of $98.03.

Intel (NASDAQ:INTC - Get Free Report) last announced its earnings results on Thursday, July 23rd. The chip maker reported $0.42 earnings per share for the quarter, beating the consensus estimate of $0.21 by $0.21. Intel had a negative net margin of 19.79% and a positive return on equity of 2.62%. The business had revenue of $16.13 billion during the quarter, compared to the consensus estimate of $14.43 billion. During the same period in the prior year, the firm earned ($0.10) earnings per share. The business's quarterly revenue was up 25.2% compared to the same quarter last year. Intel has set its Q3 2026 guidance at 0.380-0.380 EPS. As a group, equities analysts forecast that Intel Corporation will post 1.04 earnings per share for the current year.

Insider Activity

In other Intel news, CEO Lip Bu Tan bought 105,263 shares of the stock in a transaction on Tuesday, August 11th. The shares were bought at an average price of $95.00 per share, with a total value of $9,999,985.00. Following the purchase, the chief executive officer directly owned 1,314,669 shares in the company, valued at $124,893,555. The trade was a 8.70% increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.05% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Intel

Several institutional investors have recently modified their holdings of INTC. ABS Investment Management LLC bought a new stake in shares of Intel in the second quarter worth $694,101,000. Montgomery Financial Services LLC bought a new position in Intel in the second quarter valued at about $26,000. Knuff & Co LLC acquired a new position in Intel in the 2nd quarter worth about $29,000. Glynn Capital Management LLC acquired a new position in Intel in the 2nd quarter valued at approximately $29,000. Finally, Beaird Harris Wealth Management LLC lifted its position in shares of Intel by 3,185.7% in the 2nd quarter. Beaird Harris Wealth Management LLC now owns 230 shares of the chip maker's stock worth $32,000 after purchasing an additional 223 shares during the period. 64.53% of the stock is currently owned by institutional investors and hedge funds.

Intel Company Profile

Intel Corporation NASDAQ: INTC is a global semiconductor company that designs and manufactures computing and connectivity products. Its portfolio includes central processing units (CPUs), graphics and accelerator products, chipsets, networking components, and other semiconductor solutions used in personal computers, servers, cloud infrastructure, artificial intelligence systems, and embedded applications.

The company serves a broad range of customers, including original equipment manufacturers, cloud service providers, enterprise businesses, telecommunications companies, government organizations, and other technology firms.

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