From Nasdaq:

After a sharp drop, Intel(NASDAQ:INTC) stock trades at $47, 31% below its pre-inflation peak. Declining demand led to this fall, but signs of recovery are emerging with increased demand in the PC market. However, competition from graphics processors and uncertainty in the macroeconomic environment remains a concern.

The Trefis High Quality Portfolio has consistently outperformed the S&P 500, posing a question of INTC’s performance given uncertain macroeconomic conditions and competition from companies like AMD. Current valuation, at $38 per share, remains below market price, attributable to macroeconomic headwinds and soaring competition from AMD in the server processor market.

A timeline of the inflation shock reflects the instability in the market since 2020, as shipping snarls and worker shortages due to Covid-19 devastated supply chains and caused a spike in inflation. Comparing it to the 2007-08 crisis and subsequent recovery, it’s uncertain how these changes have impacted Intel’s stock.

Intel’s revenues increased to about $79 billion in 2021, with earnings dropping to under $2 per share in 2022. The debt stands at $49 billion, while cash flows from operations are at $15 billion. The company appears to be in a good position to meet its near-term obligations.

In conclusion, while Intel stock could benefit from easing inflation and interest rate cuts, stiff competition in the CPU market and the rising prominence of GPUs may limit the stock’s upside. Returns show INTC underperforming the S&P 500, making the stock’s future performance uncertain during this period of macroeconomic turmoil.



Read more: Will Intel Stock Recover To Pre-Inflation Shock Highs?