Intel Stock Faces Analyst Caution with “Reduce” Rating

Intel Corporation (NASDAQ: INTC) has received an average consensus recommendation of “Reduce” from thirty-six brokerages currently covering its stock, according to MarketBeat Ratings. The analysis indicates that eight research analysts have issued sell ratings, while twenty-four have assigned a hold rating, and four have labeled the stock as a buy. The average 12-month price target for Intel, based on recent updates from analysts, is approximately $35.88.

A series of analyst reports released on October 24, 2023, highlighted varying perspectives on Intel’s future. Notably, Deutsche Bank Aktiengesellschaft raised its price target for Intel from $30.00 to $35.00 while maintaining a “hold” rating. Similarly, JPMorgan Chase & Co. increased its price target from $21.00 to $30.00, assigning the company an “underweight” rating. In contrast, Wells Fargo & Company elevated its price target from $30.00 to $45.00 with an “equal weight” rating.

On the other hand, DZ Bank reiterated a “sell” rating for Intel’s shares, and HSBC Global Research downgraded its recommendation from a “hold” to a “moderate sell” on October 7, 2023. These mixed evaluations underscore the cautious sentiment among analysts regarding the company’s stock performance.

Intel Reports Earnings and Revenue Growth

Intel’s financial performance was also in focus following its latest quarterly earnings report, which was released on October 23, 2023. The semiconductor manufacturer reported earnings per share (EPS) of $0.23 for the quarter, with total revenue reaching $13.65 billion. This was a notable increase compared to analyst expectations of $13.10 billion. Year-over-year, the company’s revenue rose by 3.0%, a positive sign amid a challenging market environment. The net margin stood at 0.37%, although Intel recorded a negative return on equity of 0.75%.

Looking forward, Intel has set guidance for the fourth quarter of 2025, projecting EPS of $0.08. Analysts forecast that the company may report an EPS of -$0.11 for the current fiscal year, reflecting ongoing challenges in the semiconductor sector.

Institutional Investors Adjust Positions

Recent movements among institutional investors reveal a shift in holdings related to Intel. Norges Bank acquired a new stake in the company during the second quarter, valued at approximately $1.58 billion. Additionally, Capital World Investors boosted its holdings by 32.5% in the third quarter, now owning 86,503,121 shares worth around $2.90 billion after purchasing an additional 21,230,715 shares.

Another significant investor, Kingstone Capital Partners Texas LLC, also acquired a stake in Intel during the second quarter, valued at about $345.25 million. Meanwhile, Assenagon Asset Management S.A. increased its position by 86.4%, now holding 22,705,050 shares valued at approximately $508.59 million. AQR Capital Management LLC reported a staggering increase in its holdings by 210.9%, owning 15,498,219 shares worth around $346.23 million after purchasing an additional 10,514,007 shares.

Overall, institutional investors currently own 64.53% of Intel’s stock, indicating significant confidence from large financial entities despite the prevailing analyst caution.

Founded in 1968 by Robert Noyce and Gordon E. Moore, Intel Corporation is headquartered in Santa Clara, California. It has established itself as a leading global designer and manufacturer of semiconductor products, historically recognized for pioneering the first commercial microprocessor and shaping the x86 architecture used in many personal computers and servers. The company’s extensive product portfolio includes client and mobile processors under the Intel Core and Pentium brands, along with high-performance Xeon processors designed for data centers and cloud infrastructure.