:max_bytes(150000):strip_icc()/GettyImages-2257634535-54f91447941d4dfca505378fc391477c.jpg "Is the Rally for Intel’s Stock Over?")
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Key Takeaways
- Intel shares tumbled Friday after the chipmaker’s outlook disappointed, erasing much of the stock’s gains over the past few weeks.
- Wall Street analysts suggested some of the investor enthusiasm behind the stock’s recent rally may have been premature.
Intel’s recent rally might just be over.
Shares of Intel (INTC) plunged 17% to close at $45 Friday, giving up most of their gains in the last few weeks, after the chipmaker gave a disappointing outlook for the current quarter.
While Intel posted fourth-quarter results that topped analysts’ estimates, executives warned Thursday that supply could hit a low this quarter, as the company grapples with industry-wide shortages of key components.
For several Wall Street analysts, that seemed to confirm suspicions that the stock, which surged in the weeks leading up to Thursday’s report, may have climbed too high, too fast.
Why This Is Significant
Intel was one of the best-performing stocks in the S&P 500 for 2026 up until the chipmaker reported earnings this week, with shares adding nearly half their value in January through Thursday’s close. Friday’s tumble, however, underscores a blow to investor confidence in the stock.
Analysts at Bank of America, Jefferies, and Wedbush suggested following the results that investors’ expectations may have climbed out of touch with Intel’s fundamentals leading into the report.
“Ultimately, we quite like the story but the stock has gone up so much and the bull case to support further upside from here is 3-4 years away, in our view,” wrote UBS analysts, who reiterated a neutral rating for the stock.
Most Wall Street analysts have hesitated to recommend buying Intel shares in recent months while waiting for more evidence of the chipmaker’s turnaround. While ratings are still in flux, six of the eight analysts tracked by Visible Alpha have issued “hold” recommendations, compared to just one “buy” and one “sell” rating. Their mean price target at $49 would suggest roughly 9% upside from Friday’s close.
Even with Friday’s losses, Intel shares have gained about a fifth of their value since the start of the year, and more than doubled in value in the last 12 months.
