Prabhjote Gill
4 min read
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Both Bank of America and Roth Capital downgraded Intel to ‘Neutral’ from ‘Buy’.
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Bank of America also lowered its estimate of the company’s 2030 earnings power.
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Citi called Intel’s quarterly performance a ‘strong beat’ but said its December-quarter outlook was ‘weak.’
Intel (INTC) shares were on track to wipe out a quarter of their market capitalization and see their worst day in over two years in pre-market trade on Friday after a slew of price target cuts and downgrades from Wall Street following the tech giant’s third-quarter earnings.
Analysts broadly agree that Intel’s near-term outlook is shaky, with weaker PC demand, manufacturing constraints, and delayed supply improvements weighing on expectations, according to TheFly.
INTC stock fell as much as 25% in pre-market trade, on track to see its biggest single-day dip since July 2024. If the stock falls more than 26%, it would mark its biggest dip since April 1979, when it fell over 33%.
If the losses hold through the regular session, the stock would also hit a six-month low. On Stocktwits, retail sentiment around Intel remained in ‘bullish’ territory over the past day.
INTC Stock Gets Downgraded
Bank of America analyst Vivek Arya downgraded Intel to ‘Neutral’ from ‘Buy’ and lowered the price target to $100 from $145. He said the company’s turnaround had been pushed out by PC and supply headwinds, while a “surprisingly sharp drop” in PC shipments offset strength in data center demand.
Arya also pointed to a lack of progress in attracting outside foundry customers, saying Intel “has not communicated enough traction with external foundry customers.” The firm lowered its estimate of Intel’s 2030 earnings power to $5 to $6 per share from $6 to $7.
Roth Capital analyst Suji Desilva also downgraded Intel to ‘Neutral’ from ‘Buy’ and lowered his price target to $70 from $120. While “encouraged” by continued data center growth and the expansion of Intel’s custom data center business, Desilva said manufacturing constraints could limit further upside.
Intel Had A ‘Strong Beat’ But ‘Weak’ Outlook
While Citi stated that Intel’s third-quarter performance was a “strong beat,” it also noted that the company’s December-quarter outlook was “weak,” citing the impact of a manufacturing accident that shut down Fab 28 in Israel and softer PC demand. The firm lowered its price target to $100 from $130 while maintaining a ‘Buy’ rating.
