Skip to content

Bank of America revises Intel stock price target amid disappointing Q2 reports 

Bank of America revises Intel stock price target amid disappointing Q2 reports
Aneena Alex

Intel Corporation (NASDAQ: INTC) saw a dramatic decline in its stock price following the release of its Q2 earnings report, which fell short of expectations and revealed extensive restructuring plans. 

The string of disappointing announcements has prompted a wave of updates to analysts’ assessments of Intel and its future prospects, leading several leading financial firms to significantly lower their price targets for INTC stock.

The stock plummeted nearly 30% on Friday, marking its most significant single-day drop since 1982. 

The company’s quarterly revenue of $12.83 billion missed the analyst forecast of $12.94 billion, while its guidance for the upcoming quarter was also revised downwards to a range of $12.5 billion to $13.5 billion, below the estimated $14.35 billion.

Moreover, Intel announced plans to lay off over 15% of its workforce by the end of 2024, aiming to cut operational expenses by more than $10 billion in the next year. These measures are part of a broader effort to realign its structure and improve efficiency amid challenging market conditions.

The disappointing earnings and restructuring news had a ripple effect across the global semiconductor industry, with a 2.4% drop in the Nasdaq.

Major players like Tokyo Electron, ASML Holding NV (NASDAQ: ASML), Nvidia (NASDAQ: NVDA), and Taiwan Semiconductor Manufacturing Company (NYSE: TSM) experienced significant declines, contributing to a downturn in their respective stock markets.

Bank of America revises Intel’s stock price target

In response to Intel’s lackluster Q2 results and uncertain outlook, several analysts have revised their assessments of the company’s stock as reported by Finbold.

Notably, Bank of America (NYSE: BAC) analysts downgraded the company’s stock from “Neutral”  to “Underperform.” This downgrade reflects concerns about Intel’s ongoing profitability challenges, which are expected to persist through the 2026 fiscal year.

The analysts highlighted several critical issues, including Intel’s Integrated Device Manufacturer (IDM) structure, which is perceived as less competitive compared to more focused rivals such as Nvidia, AMD, and TSMC. 

One of the key factors driving the downgrade is Intel’s lack of competitive artificial intelligence (AI) accelerators, which diminishes its appeal to major cloud customers. 

The analysts also raised concerns about the potential unintended competitive consequences of Intel’s significant restructuring efforts, including the 15% reduction in headcount and cuts to capital expenditures.

Furthermore, Intel’s decision to suspend its dividend could make the stock less attractive to some investors. 

As a result, Bank of America significantly lowered its earnings per share (EPS) forecasts for Intel for the fiscal years 2024, 2025, and 2026. The price objective for the stock was slashed from $35 to $23, reflecting the analysts’ cautious outlook on Intel’s near-term growth prospects.

Conclusion

Intel’s recent earnings report has cast a shadow over its future prospects, with significant restructuring plans and missed revenue targets leading to a sharp decline in its stock price. 

The company’s strategic challenges, particularly in the competitive AI and semiconductor markets, have prompted analysts to lower their expectations for Intel’s performance in the coming years.

As Intel navigates these turbulent times, its ability to realign its operations and regain investor confidence will be crucial in determining its long-term success.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.