From Nasdaq: 2024-06-10 00:46:03

Intel stock (NASDAQ:INTC) has seen a 55% drop, trading at $31 from a high of $68 in April 2021. The decline was due to lower demand for PCs post-Covid and competition from GPUs. However, a 20% recovery is seen, driven by signs of a PC market pickup and Intel’s new AI chips.
INTC stock has declined by 40%, compared to Arista Networks’ 300% surge over the past 3 years. Arista benefits from generative AI and is part of a high-quality portfolio that outperforms the S&P 500 yearly. Can Intel’s stock rebound?
Intel’s stock may need a 120% gain to return to pre-inflation shock levels. The company faces challenges in the foundry space but has potential in third-party chip production. Intel’s valuation is estimated at $41 per share. Its AI presence will be crucial amid Nvidia’s dominance.
During the 2022 inflation shock, Intel’s stock trended amidst market turbulence. Intel’s stock and the broader market’s performance during the 2007/08 crisis are comparable. Intel faced a 52% stock decline post-crisis but later saw a 60% recovery. The S&P 500 saw a similar decline and recovery.
Intel’s revenues surged in 2019-21 but fell to $54 billion in 2023. Earnings dropped from $4.77/share in 2019 to $0.40 in 2023 due to declining sales. The company’s debt increased to $49 billion from $29 billion in 2019, but it holds $28 billion in cash and generated $15 billion from operations in 2022.
Despite potential benefits from easing inflation and possible Fed rate cuts, Intel faces stiff competition and GPU threats. The company’s strong financial position and cash reserves may see it through the inflation shock. Intel’s stock performance has seen contrasting results during the market turbulence and the 2007/08 crisis.



Read more at Nasdaq: With New AI Processors, Will Intel Stock Return To Pre-Inflation Shock Highs Of $68?