What's Next for Intel Stock After a Punishing Year? Some Say to 'Stay Far Away'

Intel Stock Performance - Intel's stock has lost more than half its value in 2024, with shares down 61% for the year [1][10] - The PHLX Semiconductor Index (SOX) is up about 19% in 2024, while Nvidia has more than doubled in value [10] Analyst Sentiment - Wall Street is broadly cautious about Intel's stock, with 13 of 16 analysts tracked by Visible Alpha having "hold" ratings and three with "sells" [3] - Bernstein analysts advised investors to "stay far away" from Intel's stock [7] - The consensus price target for Intel is around $24, representing a roughly 23% premium to recent prices [3] Leadership and Strategy - The departure of former CEO Pat Gelsinger has raised concerns about Intel's future [2] - The appointment of a new CEO and changes to Intel's turnaround plans could be near-term catalysts for the stock [6][9] - Interim co-CEOs Dave Zinsner and Michelle Johnston Holthaus called the possibility of a full separation of Intel's foundry business an "open question for another day" [8] Business Challenges - Intel faces significant challenges in proving its competitiveness, with a "lagging position" in both chip design and production [5] - The company's turnaround could depend on its foundry business, which is set to receive billions of dollars in CHIPS Act funds tied to meeting manufacturing milestones [4] - Analysts suggest that the business challenges facing Intel could take months—or years—to work through [9] Potential Breakup - A breakup of Intel's operations could become more likely, with some analysts suggesting it could benefit shareholders in the short term [4][5] - Gelsinger had been a proponent of keeping Intel's own manufacturing and contract foundry businesses as part of his turnaround effort [10]