- Intel Corp. faced a challenging April, with shares plummeting 31%, marking its worst monthly performance in over two decades. The stock's decline of 2.8% on Tuesday capped off a tumultuous month, recording its largest one-month percentage drop since June 2002. Year-to-date, Intel has plunged 39%, emerging as the weakest performer among semiconductor stocks, contrasting with the broader positive trend of the Philadelphia Stock Exchange Semiconductor Index, which, despite a 4.7% dip in April, remains up by 12% for 2024.
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The downward spiral in Intel's stock value largely stemmed from its recent earnings report, where it delivered a bleak forecast, signaling that its efforts toward a turnaround would demand more time and resources. Disappointing prospects for its factory operations earlier in the month further contributed to the selloff, exacerbating concerns about the company's trajectory. Despite the current challenges, analysts anticipate a potential turnaround for Intel in the near future. Revenue is projected to rebound by 4.2% in 2024 following a 14% decline in the previous year, with expectations of accelerating growth exceeding 12% in the subsequent year, marking its swiftest expansion since 2018.
Why it matters
With a consensus rating of 3.33 out of five, Intel trails behind its peers, exemplifying a cautious sentiment among investors towards its performance outlook.
