INTC Stock Heads For Worst Day In Over 2 Years: Jefferies Calls Q4 A ‘Substantial’ Reset Amid Slew Of Wall Street Price Cuts, Downgrades

• Both Bank of America and Roth Capital downgraded Intel to ‘Neutral’ from ‘Buy’.
• Bank of America also lowered its estimate of the company’s 2030 earnings power.
• Citi called Intel’s quarterly performance a ‘strong beat’ but said its December-quarter outlook was ‘weak.’ 

Intel (INTC) shares were on track to wipe out a quarter of their market capitalization and see their worst day in over two years in pre-market trade on Friday after a slew of price target cuts and downgrades from Wall Street following the tech giant’s third-quarter earnings. 

Analysts broadly agree that Intel’s near-term outlook is shaky, with weaker PC demand, manufacturing constraints, and delayed supply improvements weighing on expectations, according to TheFly. 

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INTC stock fell as much as 25% in pre-market trade, on track to see its biggest single-day dip since July 2024. If the stock falls more than 26%, it would mark its biggest dip since April 1979, when it fell over 33%. 

If the losses hold through the regular session, the stock would also hit a six-month low. On Stocktwits, retail sentiment around Intel remained in ‘bullish’ territory over the past day. 

INTC Stock Gets Downgraded

Bank of America analyst Vivek Arya downgraded Intel to ‘Neutral’ from ‘Buy’ and lowered the price target to $100 from $145. He said the company’s turnaround had been pushed out by PC and supply headwinds, while a “surprisingly sharp drop” in PC shipments offset strength in data center demand.

Arya also pointed to a lack of progress in attracting outside foundry customers, saying Intel “has not communicated enough traction with external foundry customers.” The firm lowered its estimate of Intel’s 2030 earnings power to $5 to $6 per share from $6 to $7.

Roth Capital analyst Suji Desilva also downgraded Intel to ‘Neutral’ from ‘Buy’ and lowered his price target to $70 from $120. While “encouraged” by continued data center growth and the expansion of Intel’s custom data center business, Desilva said manufacturing constraints could limit further upside.

Intel Had A ‘Strong Beat’ But ‘Weak’ Outlook

While Citi stated that Intel’s third-quarter performance was a “strong beat,” it also noted that the company’s December-quarter outlook was “weak,” citing the impact of a manufacturing accident that shut down Fab 28 in Israel and softer PC demand. The firm lowered its price target to $100 from $130 while maintaining a ‘Buy’ rating.

StoneX also retained a ‘Buy’ rating but cut its price target to $100 from $140. It echoed Citi’s sentiment, describing the earnings report as a beat accompanied by a “much weaker” outlook. 

The firm raised concerns about the timing of additional server capacity, saying the continued deferral of meaningful relief until the second half of 2027 was “difficult to reconcile fully with the strategic priority placed on expanding supply.”

PC Weakness Weighs On Outlook

DA Davidson analyst Gil Luria cut his price target to $70 from $100 while maintaining a ‘Neutral’ rating. He said Intel’s quarterly results were “mixed,” pointing to strong growth in Foundry and Data Center alongside significant weakness in Client Computing.

Luria also questioned whether the stock’s valuation was justified given the uneven performance, saying it was “hard to justify the current multiple when weakness is so significant.”

Jefferies analyst Blayne Curtis cut his price target to $85 from $120 and maintained a ‘Hold’ rating. According to him, the December-quarter outlook was a “substantial” reset. He cited lower client revenue and gross margins, with PC customers working down inventory and reducing near-term demand.

Citi, StoneX and BofA had the highest price targets for INTC shares at $100, even though BofA downgraded the stock to ‘Neutral’. DA Davidson and Roth Capital had the lowest targets at $70.

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