Intel Stock Forecast: What’s Next?

Following the publication of the company’s earnings report for the second quarter of the 2022 fiscal year on July 29, Intel’s (INTC) stock price dropped by more than 8% as the tech major lowered its revenue and earnings guidance for the entire year.

Following the publication of the company’s earnings report for the second quarter of the 2022 fiscal year on July 29, Intel’s (INTC) stock price dropped by more than 8% as the tech major lowered its revenue and earnings guidance for the entire year.

On a GAAP basis, Intel also reported a 22% reduction in revenues, a 20.6% decline in gross margins, and negative net profitability from the prior year.

Will the company’s declining financial performance affect analysts’ forecasts for Intel stock?

In this article, we examine the historical price performance of the INTC stock and discuss the key price factors that could influence its future movements.

Following the publication of the company’s earnings report for the second quarter of the 2022 fiscal year on July 29, Intel’s (INTC) stock price dropped by more than 8% as the tech major lowered its revenue and earnings guidance for the entire year.

On a GAAP basis, Intel also reported a 22% reduction in revenues, a 20.6% decline in gross margins, and negative net profitability from the prior year.

Will the company’s declining financial performance affect analysts’ forecasts for Intel stock?

In this article, we examine the historical price performance of the INTC stock and discuss the key price factors that could influence its future movements.

The leader in CPU production is Intel Corporation.

In 1968, two engineers started the Intel Corporation. It has been a technological innovator in numerous fields, creating cutting-edge memory chips and CPUs, among other goods and solutions.

According to statistics from Statista, Intel now holds the top spot in the market for x86 computer central processing units (CPUs) with a market share of 63.6%.

The company’s Client Computing (CCG), Data Center and AI (DCAI), and Network and Edge revenue sectors are its three most significant revenue streams (NEX).

Products that power consumer electronics devices like smartphones, laptops, and desktops are the main emphasis of the CCG segment. While the NEX section focuses on selling items for telecommunication devices, the DCAI segment primarily serves data centers.

Intel generated $74.7 billion in overall revenue and $22.2 billion in operating income in 2021. Pat Gelsinger, who assumed the position in February 2021, is the company’s CEO. Statista estimates that Intel has around 120,000 employees working for it globally.

Analysis of Intel’s stock: Recent developments

The price of INTC stock has plunged 28.4% this year, while the tech-heavy Nasdaq-100 Index (US100) and the S&P 500 Index (US500) have decreased correspondingly by 20.7% and 13.3% over the same period.

The decline in the company’s performance can be ascribed to the macroeconomic environment, which has changed as major central banks worldwide have adopted hawkish policies, including hiking interest rates to slow the rate of inflation growth.

The battle between Intel’s two main rivals, Advanced Micro Devices (AMD) and NVIDIA (NVDA), is also becoming more intense. Although the corporation dominates the CPU industry, it has difficulty holding market share in other segments like data center products and graphics processing units.

Last but not least, the company’s capacity to satisfy the demands of its most significant clients, including PC manufacturers and major auto companies, has been hampered by an increase in the cost of raw materials and the ongoing supply chain issue.

Analysis of Intel’s stock performance throughout the time

The S&P 500 and NASDAQ-100 benchmark indices have outperformed the value of Intel stock during the previous ten years. According to data from Koyfin, the NASDAQ-100 Index saw gains of 389.1% throughout that time, for a compound annual growth rate (CAGR) of 17.2%.

While the INTC stock price increased by only 87.3%, the S&P 500 saw total gains of 198%, or an 11.5% CAGR, over those ten years.

Since the start of 2018, the price movement of Intel stock has been fairly erratic. The stock saw significant falls quickly after reaching two all-time highs of about $68.

When the pandemic occurred, market players sold down INTC out of concern that the company’s financial performance would suffer due to the limits put in place by governments to stop the virus’ spread.

Soon after, when demand from data centers increased due to increased cloud computing activity, the price of Intel shares on the market began to rebound. However, the stock was under pressure, and the price fell to its lowest point in nearly five years due to macroeconomic headwinds and the company’s problems in meeting the demand for its products in the post-Covid environment.

Can Intel’s stock rise again?

Watch for key pricing drivers.

In the future, the following elements may be crucial to take into account when formulating an Intel share price forecast:

The capacity of Intel to continue to dominate its most significant markets.

Macroeconomic circumstances. The performance of the INTC stock could be further impacted if the Federal Reserve (Fed) and other central banks maintain raising interest rates while implementing more aggressive policies.

Because Intel has manufacturing and research facilities, Covid lockdowns in China may impact the company’s manufacturing capacity. An escalation in the hostilities between Russia and Ukraine could also impact Intel’s activities in other European nations.

Higher inflation might result in less of a market for consumer electronics (PCs, laptops, and smartphones), which would immediately affect Intel’s CCG business sector, which is the largest in terms of revenue.

NASDAQ: INTC News most recent income

Intel Corporation disclosed the second quarter of the 2022 fiscal year’s financial figures on July 28. Intel announced GAAP revenues of $15.3 billion for the three months that ended on July 2, a 22% year-over-year decrease.

Sales fell by 25% in the CCG segment at this time and by 16% in the DCAI segment, indicating poor performance. Finally, the NEX segment’s 11% increase in sales helped to partially offset some of this poor performance.

The company’s GAAP gross margins decreased from 57.1% to 36.5%, while its GAAP operating margin decreased from 28.3% to minus 4.6%.

As a result, compared to the $5.1 billion in profits it generated during Q2 2021, the corporation posted GAAP net losses of $500 million. When compared to the $1.24 it reported during the same quarter last year, Intel posted a negative EPS of $0.11.

The business’s CEO, Pat Gelsinger, commented on this underwhelming performance: “This quarter’s results were below the standards we have set for the company and our stockholders. We have to and will improve. The main cause of the shortfall was the abrupt and swift reduction in economic activity, but it also reflected problems with our execution.

Intel anticipates generating revenues between $65 and $68 billion and GAAP earnings per share of $2.57 for the 2022 fiscal year. Previously, the corporation had projected $76 billion in total revenues and $4.19 in GAAP earnings per share for the entire year.

2022 to 2025 price prediction for Intel

Abhinav Davuluri, a sector strategist at Morningstar, commented on the company’s most recent earnings results and the potential future price of Intel stock, saying: “Intel’s second-quarter results were dismal as market share losses and margin compression intensified even worse than what we’ve seen in recent quarters. A 17% year-over-year fall in second-quarter revenue was attributed by management to macroeconomic headwinds, inventory/supply problems, and competitive challenges. While we acknowledge the PC industry was destined for a slowdown, we attribute Intel’s data center business decline to the company’s delay in releasing its Sapphire Rapids server CPU in the face of AMD’s superior offerings.

Although we remain optimistic about Intel’s IDM 2.0 strategy to restart its manufacturing (which will support more competitive products), we anticipate the ensuing few quarters to be quite turbulent for wide-moat Intel.

MarketBeat data show that as of August 1st, 11 out of 23 analysts had given INTC a hold recommendation, which corresponds to the consensus rating. Notably, just four experts recommended that investors buy INTC stock, while eight gave it a “sell” rating.

Based on the $36.31 closing price on July 29, the consensus price objective for Intel stock was $44.75 per share, representing a possible increase of 23.2%. The prediction for Intel’s shares over the next year ranged from $72 to $30.

Following the publication of the company’s most recent financial report, several financial services companies reduced their baseline 12-month INTC stock estimate.

Wallet Investor, an algorithm-based forecasting tool, evaluated INTC as a “not so good long-term (1-year) investment” based on a technical examination of the historical stock price of Intel. This estimate deviates from that of the analysts.

The Intel stock estimate for 2022 as of August 1 suggests that INTC may close the year at $38.680.

According to predictions made by Wallet Investor, the stock will marginally decline to $36.731 by the end of 2023 and $34.991 by the end of 2024.

By the end of the year, the stock was predicted to trade at $33.030 in its Intel stock forecast for 2025. According to its five-year Intel stock estimate, the stock might go below $30 and reach $29.900 in July 2027. There is no INTC stock prediction from Wallet Investor for 2030.

It’s vital to remember that analysts’ and algorithm-based targets for Intel stock are subject to error when examining such predictions. They are based on examining the historical share price data for INTC, and future success can never be predicted by past performance.

It’s crucial to conduct your study and keep up with market developments. Your risk tolerance, market knowledge, portfolio diversification, and comfort level with financial loss influence your decision to trade. Never trade with money you can’t afford to lose.

2022 Intel Stock Prediction

The figures: $3.50 per share earnings on $76 billion in revenue for 2022, up from $3.42 per share on $74.99 billion before the Wall Street event; gross margins of 51 to 53 percent until 2024; then 54 to 58 percent from 2025 forward; and negative cash flow of $1 to $2 billion in 2022 and projected.

2023 Intel Stock Prediction

By February 18, 2023, analysts on Wall Street predict that Intel’s stock price will be $59.25. The average Intel stock price estimate projects a potential increase of 31.55 percent from the current INTC share price of $45.04.

With the lowest revenue forecast of $322,745,742,720,000 and the highest forecast at $336,011,748,640,000, Intel is anticipated to generate $329,378,745,680,000 in sales in 2024.

2025 Intel Stock Prediction

The average price target for Intel stock is $64.47 for 2025, with a high prediction of $76.26 and a low prediction of $55.29. The average Intel stock forecast for 2025 is $45.0400009155273, up 43.13 percent from the current price.

2026 Intel Stock Prediction

The average price target for Intel stock is $98.93 for 2026, with a high prediction of $117.15 and a low prediction of $70.85. The average price target for Intel stock in 2026 is higher than its list price of $45.0400009155273 by 119.65%.

2027 Intel Stock Prediction

With a high prediction of $115.98 and a low estimate of $101.51, the average Intel stock prediction for 2027 (5 years) is $112.4. The average Intel stock forecast for 2027 is higher than its previous price of $45.0400009155273, which is up 149.56 percent.

2028 Intel Stock Prediction

There are ten predictions for each month of the year in the Intel stock forecast for 2028, with an average prediction of $58.22, a high prediction of $68.13, and a low prediction of $45.33.

The average forecast for Intel’s stock for 2028 is higher by 29.25% than the stock’s most recent price of $45.0400009155273.

2029 Intel Stock Prediction

With a high forecast of $89.11 and a low forecast of $87.38 for each month of 2029, the average Intel stock projection for that year is $88.24.

The anticipated value of Intel stock in 2029 is 95.92% more than its current price of $45.0400009155273. Further down, there are more projections.

2030 Intel Stock Prediction

The forecast for Intel stock is $89.72 on average for the year 2030, with high predictions of $110.65 and low predictions of $67.16 each month.

According to the average Intel stock projection for 2030, there will be a 99.19 percent increase from the current price of $45.0400009155273.

With the company’s shares up almost 8% in the new year, Intel’s stock estimate seems to be getting traction.

SUBSTANTIAL QUESTIONS

What Investments Is Intel Making?

Following Samsung’s statement late last year that it aims to construct a $17 billion semiconductor facility outside Austin, Texas, Intel has made a significant investment in American semiconductor manufacturing.

Are shares of Intel undervalued?

Intel is one of the worst-performing stocks in the technology industry (NASDAQ: INTC). The company appears undervalued, with the S&P 500 index trading at a cyclically adjusted P/E ratio of 38.3.

Is Intel a Reliable Investment?

The stock barely trades at ten times management’s projected adjusted 2021 earnings. Once it speeds up innovation and gets back on track, Intel has a good chance of outperforming the general market. We strongly suggest you do extensive research before investing in any coin.

Is Intel a wise long-term investment?

Long-term investors should consider buying the company due to its low price, Intel’s (NASDAQ: INTC) AI capabilities, and its excellent chip-building methodology, among other things. In addition, further growth in the extraordinarily high total demand for chips is anticipated.

The stock estimate for Intel does not suggest that the company has overnight become a better investment in the semiconductor sector, where other fast-growing rivals offer a much larger likelihood of capital appreciation.

We continue to advise investors to adopt a wait-and-see approach regarding Intel shares.

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