Intel Stock Fluctuates Amid Challenges and Opportunities

What's Going On With Intel Stock On Thursday? - Intel (NASDAQ:INTC)

The stock fell 47% over the last year as Intel struggled to capitalize on AI growth and lost key contracts to Taiwan Semiconductor. Intel Corp INTC CFO David Zinsner expects to generate a "meaningful" amount of revenue from its contract chip manufacturing business in 2027, Reuters cites the company's CFO at an investor conference on Wednesday. Intel is currently discussing with 12 potential customers how to generate revenue in 2026 and additional cash in 2027. The stock has fallen since reports indicated Intel's failure to impress Broadcom Inc AVGO with its latest wafer production. Intel stock plunged over 47% in the last 12 months as it failed to milk the artificial intelligence boom. Its contract manufacturing unit lost out to Taiwan Semiconductor Manufacturing Co TSM. Intel scrapped its 20A manufacturing process for the more advanced 18A manufacturing process, Zinsner told Reuters. Recent reports indicated Intel weighing strategic options, including splitting its product design and manufacturing businesses. Analysts and investors also speculate Intel is losing its Dow Jones Industrial Average position. Intel expects a U.S. chip grant not until the end of 2024, posing another dampener for the company, especially after being called out by Republican Senator Rick Scott over its record downsizing plans. Investors can gain exposure to Intel through Vanguard S&P 500 ETF VOO and iShares Core S&P 500 ETF IVV. Intel Stock Prediction For 2024 Intel's revenue growth in FY23 was -14.0%, reflecting the influence of various factors including the macroeconomic environment, demand for its products and services, and its position relative to competitors. This growth is a critical indicator for investors assessing the company's future prospects. Some macro factors that could impact the company's performance in the next year include higher interest rates, progress on reeling in inflation and labor market strength. The Fed's benchmark rate is currently at 5.33%, while PPI recently came in at 0.1%, growing 2.2% from last year. The unemployment rate was most recently reported as 4.3%. An investor should pay attention to economic conditions to decide whether they think the macro environment is positive or negative for Intel stock. For real time economic data and breaking market updates, check out Benzinga Pro. Try it for free. How does this stack up against Intel's peers? Investors may also want to analyze a stock in comparison to companies with similar products or in similar industries. Intel operates in the Information Technology sector. The stock has experienced average annual growth of -28.66% compared to the 7.48% average of its peer companies. This is below the broader sector movement of Intel. Price Action: INTC stock is up by 0.41% at $19.52 at the last check on Thursday. Photo via Shutterstock Market News and Data brought to you by Benzinga APIs

What's Going On With Intel Stock? - Intel (NASDAQ:INTC)

Broadcom engineers determine the manufacturing process had failed and is not yet ready to move to high-volume production. Intel Corporation INTC shares are trading lower Wednesday following Tuesday's 7.7% drop. Intel's contract manufacturing business has been dealt a blow after tests on wafers for Broadcom, Inc. AVGO reportedly failed. The Details: According to a Reuters report, the tests involved using Intel's 18A manufacturing process on silicon wafers which were sent back to Broadcom last month. Broadcom engineers then determined the manufacturing process had failed and was not yet ready to move to high-volume production. Read Next: Nvidia Receives DOJ Subpoena In Antitrust Investigation: What To Know "Intel 18A is powered on, healthy and yielding well, and we remain fully on track to begin high volume manufacturing next year," an Intel spokesperson said in a statement to Reuters. "There is a great deal of interest in Intel 18A across the industry but, as a matter of policy, we do not comment on specific customer conversations." Reuters reported Tuesday that Intel could be removed from the Dow Jones Industrial Average as the chipmaker's stock is the index's worst performer in 2024. The stock fell sharply at the beginning of August after reporting worse-than-expected second-quarter results and a $10 billion cost-cutting initiative. According to data from Benzinga Pro, Intel shares are down more than 60% year-to-date. Will INTC Stock Go Up? When trying to assess whether or not Intel will trade higher from current levels, it's a good idea to take a look at analyst forecasts. Wall Street analysts have an average 12-month price target of $26.81 on Intel. The Street high target is currently at $42 and the Street low target is $17. Of all the analysts covering Intel, one has a positive rating, 11 have neutral ratings and 4 have negative ratings. In the last month, one analyst has adjusted price targets. Here's a look at recent price target changes [Analyst Ratings]. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering Intel have performed in recent history. Stocks don't move in a straight line. The average stock market return is approximately 10% per year. Intel is 60.46% down year-to-date. The average analyst price target suggests the stock could have further upside ahead. For a broad overview of everything you need to know about Intel, visit here. If you want to go above and beyond, there's no better tool to help you do just that than Benzinga Pro. Start your free trial today. INTC Price Action: According to Benzinga Pro, Intel Corporation shares are down 2.70% at $19.57 at the time of publication Wednesday. Read Also: What's Going On With GameStop Stock? This image was generated using artificial intelligence via MidJourney. Market News and Data brought to you by Benzinga APIs

Intel Stock Drops Further as Silicon Wafers Reportedly Fail Broadcom Tests

Intel (INTC) shares extended their losses Wednesday amid a stretch of bad news, as Reuters reported that recent tests of the chip giant's most advanced manufacturing process conducted by Broadcom (AVGO) failed. Silicon wafers, which chips are printed on, reportedly were returned to Broadcom last month after they were run through Intel's 18A manufacturing process. A review by Broadcom engineers found that the process isn't ready to be used for high-volume production, Reuters said. Intel and Broadcom did not immediately respond to Investopedia requests for comment. While many chip stocks have surged amid artificial intelligence (AI) demand, Intel shares have lost about 60% of their value since the start of 2024. Those struggles have accelerated over the last month, with a disappointing earnings report and the announcement that it would lay off about 15% of its employees as part of a larger cost-cutting plan. The earnings report sent shares 26% lower the day after it was released, to their lowest point in over a decade. The earnings-related fall was followed by reports that concerns have emerged over the company's planned construction of two new facilities in Germany. On Tuesday, shares were driven lower by a report that executives are preparing to present plans to cut costs and sell assets amid the company's struggles, and concerns that Intel could potentially face removal from the Dow Jones Industrial Average (DJIA). Intel shares were 2% lower at $19.67 early Wednesday afternoon.