Intel Corporation's stock experienced notable swings last week, closing Friday's session at $46.79, a gain of 0.6%. The shares traded in a range between $45.00 and $47.69, with volume reaching approximately 69.7 million shares. This movement followed a sharp 3.75% decline the previous day, leaving the stock well below its 52-week high of $54.60 reached in late January.
Analyst Adopts a 'Show Me' Stance
Investment firm DA Davidson initiated coverage on Intel with a Neutral rating and a 12-month price target of $45. The firm characterized the company's ambitious turnaround effort as "one of the hardest resets in semiconductor history," labeling it the "ultimate show me" story for investors. This highlights the significant execution risk as Intel attempts to regain manufacturing leadership and grow its foundry services business.
The broader market context remains challenging. Tech and semiconductor stocks sold off sharply on Thursday amid concerns about AI disruption, with the Philadelphia Semiconductor Index falling 2.5%. A softer-than-expected U.S. inflation report provided some stability on Friday, with the Consumer Price Index rising 2.4% year-over-year versus forecasts of 2.5%.
Strategic Challenges and Data Points
Intel faces cross-currents in the rapidly evolving chip sector. The company supplies central processing units (CPUs) for data centers alongside AI accelerators but is working to rebuild credibility in an industry dominated by rivals like Nvidia and AMD. In its last earnings report, Intel disappointed investors by forecasting current-quarter revenue and profit below estimates, with management acknowledging an inability to fully meet demand for server chips used in AI data centers.
Additional data from a quarterly SEC filing showed Intel's reported U.S. equity holdings were valued at roughly $724 million as of December 31. Looking ahead, market participants are anticipating chip-sector bellwether Nvidia's quarterly results call on February 25 for signals on data-center demand.
U.S. markets are closed on Monday, February 16, for the Presidents Day holiday, with trading resuming on Tuesday.
