Quick Read
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Intel (INTC) closed at $60, down 58% from its June peak of $142, wiping out roughly $430 billion in market value.
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CFO David Zinsner warned the PC slowdown will continue “at least through the first half of next year,” overshadowing a 21% revenue gain.
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Intel trades at 43x forward earnings with no free cash flow expected next year, while NVIDIA (NVDA) trades at 17x with 117% data center growth.
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In about 10 months, this stock multiplied several times over, and it has since given back more than half of that value since late June. Intel (NASDAQ:INTC) closed Monday at $59.97, down $5.79, or 8.80%, after reaching an intraday low of $59.40.
That was its first close under $60 since April 8, when shares finished at $58.95, and its lowest close since that day. About 231 million shares traded, the market value ended at $318.74 billion, and the stock was quoted at $60.57 after hours.
The average analyst price target is $101.02, roughly 68.5% upside from Monday’s close. Such a wide gap means the Street and the market sharply disagree about Intel’s next year.
Analysts are focused on a fast-growing data center business. The market is pricing in a PC slump, a weak fourth-quarter outlook, and a foundry that still has no major customer for its most advanced chips. For now, I think the market has the stronger case.
Two Peaks and a Drawdown Past 57%
Intel hit its 52-week intraday high of $142.35 on June 30, and its record close of $140.94 came on June 22. Monday’s close is 57.9% below the first and 57.5% below the second.
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The stock had already lost more than half its value by Friday’s close of $65.76, 53.3% below the record. On Monday, it broke below $60.
With about 5.31 billion shares outstanding today, the decline wiped out roughly $430 billion of market value from the record close and about $438 billion from the intraday high. Both numbers are estimates, because the share count at the peak may have been different.
