Intel (NASDAQ: INTC) stock is facing renewed selling pressure after plunging almost 30% on Friday following the semiconductor company’s third-quarter earnings report.
The sell-off wiped more than $146 billion off Intel’s market capitalization, sending shares down to $65 and marking one of the stock’s worst single-day performances. INTC closed the day down 28%, while in 2026 Intel shares are up 66%.
Intel’s third-quarter 2026 revenue increased 21% year over year to $16.5 billion, while non-GAAP earnings per share (EPS) climbed 126% to $0.52.
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Why Intel investors were spooked
However, investors focused on its weaker fourth-quarter outlook, with revenue projected at $15 billion to $16 billion, below analysts’ $17.07 billion estimate. Adjusted EPS guidance of $0.25 also missed the $0.43 consensus.
The weak outlook reflects manufacturing constraints, softer PC demand, and higher memory prices, with Intel expecting market weakness to persist through the first half of 2027.
Strong data-center processor demand is also being held back by manufacturing and advanced packaging bottlenecks, while a disruption at its Israeli facility has added pressure.
Intel’s heavy investment in manufacturing and AI is another concern, as the company does not expect positive free cash flow in 2026.
Its latest balance sheet showed $21.85 billion in cash and cash equivalents against $50.13 billion in total debt. Although short-term investments provide additional liquidity, the figures highlight the financial strain of its turnaround strategy.
Can Intel stock drop to below $50?
A decline below $50 is now a scenario worth watching, although it would require another substantial drop from Friday’s closing price.
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The question is whether Intel’s deteriorating near-term outlook justifies further losses or whether the market has already priced in much of its challenges.
At Friday’s closing price Intel would need to decline approximately 24% to fall below $50.
Such a move could follow further deterioration in the technology company’s outlook, particularly if concerns about cash generation, production bottlenecks, and competition intensify.
However, Intel still has longer-term growth opportunities. Its data-center and AI business generated $7.3 billion in third-quarter revenue, up 78% year over year. The company is also making progress with its Intel 18A manufacturing technology and expanding its relationships with cloud computing providers.
If Intel increases server processor production, improves manufacturing yields and secures additional foundry customers, its earnings prospects could improve.
Wall Street analysts lower Intel stock price targets
The post-earnings sell-off has prompted several analysts to reassess their outlooks, with some significantly reducing their price targets.
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Bank of America downgraded Intel from ‘Buy’ to ‘Neutral’ and cut its price target from $145 to $100. Roth Capital also moved to ‘Neutral’ from Buy’, lowering its target from $120 to $70.
Susquehanna reduced its target from $105 to $75 while maintaining a ‘Neutral’ rating. Cantor Fitzgerald lowered its target from $125 to $90, also retaining a ‘Neutral’ stance.
However, not all analysts have turned bearish. For instance, KeyBanc maintained its ‘Overweight’ rating despite lowering its price target from $155 to $140, while Evercore ISI retained its ‘Outperform’ rating with a $131 target.
The differing views suggest Wall Street remains divided over whether Intel’s latest setback is a temporary disruption or a more significant threat to its recovery.
Featured image via Shutterstock
