Santa Clara, California-based Intel Corporation (INTC) is a leading technology company that specializes in the design and manufacturing of semiconductor chips and computing components. Valued at a market cap of $86.1 billion, the company is best known for its microprocessors, which power the majority of personal computers (PCs) worldwide, and its contributions to high-performance computing, AI, and data center technologies.

Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and INTC fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the semiconductors industry. As one of the world’s largest semiconductor companies, Intel has a vertically integrated model with in-house chip design and fabrication, giving it greater control over production and quality. Its strengths lie in its technological leadership, extensive manufacturing capabilities, and global brand recognition. 

This semiconductor company has dipped 46.9% from its 52-week high of $37.16, reached on Jul. 17, 2024. Moreover, it has declined 16.8% over the past three months, considerably underperforming the Technology Select Sector SPDR Fund’s (XLK) 3.3% rise over the same time frame.

In the longer term, Intel has fallen 36% over the past 52 weeks, lagging behind XLK’s 10.8% return over the same time frame. Moreover, on a YTD basis, shares of INTC are down 1.6%, compared to XLK’s marginal uptick. 

To confirm its bearish trend, Intel has been trading below its 200-day moving average over the past year, with slight fluctuations, and has remained below its 50-day moving average since early April, with minor fluctuations. 

On Apr. 24, Intel delivered its Q1 results. However, despite delivering better-than-expected adjusted EPS of $0.13 and revenue of $12.7 billion, its share price fell 6.7% in the following trading session. Compared to the year-ago quarter, its revenue declined slightly, while its adjusted EPS was down 27.8%. Growth in its Data Center and AI (DCAI), foundry, and other segments was offset by weaker Client Computing Group (CCG) sales.

The biggest disappointment for investors was Intel’s soft Q2 guidance. The company anticipates revenue to be between $11.2 billion and $12.4 billion, and expects adjusted EPS to break even, signaling a sequential slowdown. Management cited a challenging macroeconomic environment and elevated industry uncertainty as key concerns acting as headwinds. 

Intel has also lagged behind its rival, Advanced Micro Devices, Inc.’s (AMD) 31.3% decline over the past 52 weeks. However, it has outpaced AMD’s 5.1% loss on a YTD basis. 

Given Intel’s recent underperformance relative to its broader sector, analysts remain cautious about its prospects. The stock has a consensus rating of "Hold” from the 38 analysts covering it, and the mean price target of $22.42 suggests a 13.6% premium to its current price levels.