Intel Corporation (NASDAQ: INTC) stock is drawing attention today following a sharp 9% drop during intraday trading on Friday, marking its most significant decline in three months. The sharp drop came as analysts at Goldman Sachs and Bank of America downgraded their price targets for the chipmaker after it issued weak Q2 revenue guidance.
Goldman Sachs and Bank of America have made significant downward revisions to their price targets for Intel Corporation (INTC) stock, reflecting growing concerns about its competitive position and growth prospects in the semiconductor market.
Goldman Sachs analysts, led by Toshiya Hari, lowered their price target for Intel stock from $39 to $34 and reiterated their “sell” rating, a stance they’ve maintained since July 2020. The analysts expressed worries about Intel’s ability to maintain its market share in the Data Center Compute segment, particularly against competitors like Nvidia (NVDA) and Arm (ARM).
In a note issued on Friday, Hari and the Goldman Sachs team stated,
“We worry that the company will continue to cede wallet share within the overall Data Center Compute market to the likes of Nvidia (NVDA) and Arm (ARM).”
Similarly, Bank of America reduced its price objective for INTC stock from $44 to $40, citing “higher costs, lower growth,” and “tough competition.” The analysts at Bank of America acknowledged that Intel’s first-quarter sales were in line with expectations but flagged concerns over weak second-quarter guidance, indicating “lukewarm” topline growth and challenges related to AI exposure, manufacturing utilization, and elevated costs.
Despite the gloomy outlook, Bank of America highlighted some potential turnaround factors for Intel, including its strong enterprise presence, US-based manufacturing assets, and weak investor sentiment.
These downward revisions from prominent financial institutions came a day after Intel issued weak Q2 revenue guidance, overshadowing its better-than-expected first-quarter results.
Intel (NASDAQ: INTC) Stock Price Action
At the time of this report, INTC stock is trading at $31.99, showing a 0.35% increase from the previous trading session.
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