Amid weak pre-market price performance of other big stocks, including Amazon (NASDAQ: AMZN) and Opendoor Technologies (NASDAQ: OPEN), the shares of American multinational corporation and technology company Intel (NASDAQ: INTC) have followed suit in what might be their largest dip in 24 years.
As it happens, the price of Intel stock has dropped over 20% in pre-market, which is the culmination of the relatively poor performance in the past five days, adding up to the 20.51% decline, as well as accumulating a loss of 26.72% on its monthly chart, currently amounting to $24.94, as per data on August 2.
Why is Intel stock down?
Indeed, such a dramatic decline in after-hours trading has triggered concerns over the future price of INTC shares, leaving traders to look for reasons as to why is Intel stock so cheap at the moment, with among the largest and most probable causes being Intel’s recent announcements.
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Specifically, Intel Corporation has announced layoffs of 15,000 of its employees as part of its “significant actions to reduce costs” and save $10 million in 2025, with CEO Pat Gelsinger explaining that these jobs represent 15% of its global workforce and arrive after reporting no profits from the last quarter.
As Gelsinger said in a statement:
“This is painful news for me to share. I know it will be even more difficult for you to read. This is an incredibly hard day for Intel as we are making some of the most consequential changes in our company’s history. (…) These decisions have challenged me to my core, and this is the hardest thing I’ve done in my career.”
On top of that, Intel plans to become a “leaner, simpler, and more agile company” by also cutting down its operational costs, lowering capital and other costs, streamlining its portfolio, removing complexities, sustaining growth investments, as well as suspending its dividend. As Gelsinger clarified:
“These actions, combined with the launch of Intel 18A next year to regain process technology leadership, will strengthen our position in the market, improve our profitability and create shareholder value.”
Intel stock price prediction 2025
Taking into account the recent dramatic decline in premarket trading, the once-dominant force in the global semiconductor industry might lose close to $25 billion in market capitalization as it struggles to stay relevant against competitors like Taiwan’s TSMC (NYSE: TSM) and other chipmakers.
Meanwhile, a group of 16 Wall Street analysts providing ratings for Intel stock in the past three months is on the fence, the majority of them recommending to ‘hold’ it, one expert suggesting to ‘sell,’ while three are still optimistic that INTC shares will recover and scoring them as a ‘buy.’
At the same time, the experts’ average price target for Intel stock stands at $40.21, which would indicate an increase of 61.23% from its current situation, with the highest target at $68 (+172.65%), and lowest at $29 (+16.28%), although they might revise these targets in line with the recent developments.
Overall, Intel seems to be in a rough spot in terms of its viability and future price performance, and only time will tell if the company’s strategies will positively reflect on INTC earnings and, as a result, exercise positive influence on the price of its shares. That said, doing one’s own research is critical when investing.
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