:max_bytes(150000):strip_icc()/GettyImages-2240015417-47b7220dd086441da1e136562c5ff874.jpg "Intel Stock Slides Amid Some Worries It’s Climbed ‘Too Far, Too Fast’")
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Key Takeaways
- Shares of Intel fell Tuesday after a downgrade from Bank of America analysts, who voiced worries the stock has become overvalued after a recent rally.
- Tuesday’s drop also came as the broader tech sector lost ground amid worries about U.S.-China trade tensions.
Is Intel’s stock due for a pullback?
Bank of America analysts think so, telling clients this week they believe the struggling chipmaker’s stock has climbed “too far, too fast” after their recent rally on a string of high-profile deals.
The stock dropped over 4% Tuesday, making it one of the biggest decliners in the S&P 500 and Nasdaq, on a down day for the broader tech sector amid worries about U.S.-China trade tensions. Still, the stock is up nearly 80% for 2025, with most of the gains coming in just the last few months.
Sentiment for Intel’s (INTC) stock has gotten a boost lately after the Trump administration took a stake in August, and the chipmaker announced a partnership with rival Nvidia (NVDA) last month. That gave rise to speculation deals with others could come soon, with Apple (AAPL) and Advanced Micro Devices (AMD) floated as likely names.
However, Bank of America analysts said they believe Intel’s recent stock gains have become detached from its fundamental potential, with an outlook that “remains challenged with no discernible AI portfolio/strategy.”
Why This Matters to Intel Investors
Bank of America is the latest Wall Street firm to raise concerns the recent enthusiasm for Intel’s stock could be premature.
The analysts downgraded the stock to “underperform” from “neutral,” with a price target of $34, suggesting about a 5% decline from Tuesday’s close.
That’s a bit above the average of analysts polled by Visible Alpha, who have largely maintained neutral ratings on the stock while waiting to see more signs of customer commitments to Intel’s manufacturing business.
