Intel stock has plummeted 60% this year due to market share struggles and declining revenue

From Nasdaq: 2024-08-26 22:36:44

Intel (NASDAQ: INTC) stock has plummeted nearly 60% this year, with the company experiencing a 26% single-day decline. Meanwhile, peers like Micron Technology (NASDAQ: MU), Nvidia (NASDAQ: NVDA), and Applied Materials (NASDAQ: AMAT) have outperformed. Intel’s struggles with market share, AI chips, and declining revenue and earnings have led to investor concerns.

Despite challenges, Intel’s management has plans for a turnaround, with revenue projected to reach $59 billion in FY2024 and EPS at $1.34. However, the stock may have overshot its fair value, currently trading around $20 compared to an estimated fair value of $30. INTC stock’s performance has been volatile, underperforming the S&P 500 in recent years.

Looking ahead, Intel anticipates stable Q3 revenues with a Q4 turnaround. Successful cost optimization could help the stock reach its fair value. The company’s returns have been negative in the short term but have shown positive total returns over a longer period. Investing with Trefis’s Market-Beating Portfolios could provide a more stable and profitable investment strategy.



Read more at Nasdaq: Why Did Intel Stock Witness The Worst Crash In Its 50-Year History?