What's The Downside Risk For Intel Stock?

Core Viewpoint - Intel's stock has experienced a significant drop of 17.0% in a single day, raising concerns about its weak Q1 forecast, ongoing supply shortages, and intense competition in the AI sector [1] Company Position - Intel is valued at $203 billion with annual revenue of $53 billion, currently trading at $45.07 [3] - The company has seen a revenue decrease of 1.5% over the past 12 months and has an operating margin of -0.2% [3] Operational Performance - Current indicators suggest weak operational performance and a moderate valuation, making the stock unattractive [4] - The stock has underperformed the S&P 500 during various economic downturns, indicating potential vulnerability [5] Historical Stock Performance - Intel's stock has seen a decline of 63.3% from a peak of $68.26 on April 9, 2021, to $25.04 on October 11, 2022, compared to a 25.4% decline for the S&P 500 [9] - The stock has not yet regained its pre-crisis high, with a maximum price of $54.32 reached on January 22, 2026, and currently trading at $45.07 [9] - A previous decline of 34.8% occurred from a high of $68.47 on January 24, 2020, to $44.61 on March 16, 2020, against a 33.9% decline for the S&P 500 [10] - Another decline of 26.1% was noted from a peak of $58.82 on April 22, 2019, to $43.46 on June 3, 2019, although it fully recovered by November 26, 2019 [11] - The stock plummeted 56.8% from a peak of $27.98 on December 6, 2007, to $12.08 on February 23, 2009, matching the S&P 500's decline, but it fully rebounded by March 26, 2012 [11] Financial Ratios - Intel has a Debt to Equity ratio of 0.23 and a Cash to Assets ratio of 0.15 [8] - The stock is currently trading at a P/E multiple of 1027.5 and a P/EBIT multiple of 71.1 [8]