Yahoo Finance Intel Shares Suffer Worst Month in Decades
(Bloomberg) -- Intel Corp. shares fell 31% in April, their worst month in more than 20 years, as the chipmaker continues to struggle with executing a turnaround.
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The stock declined 2.8% on Tuesday, closing out its biggest one-month percentage drop since June 2002. It has plunged 39% this year, making it the weakest performer if the Philadelphia Stock Exchange Semiconductor Index, which is down 4.7% in April but remains up 12% for 2024.
Much of Intel’s selloff came in the wake of results last week, when it gave a weak forecast, a sign that the company’s turnaround efforts are going to take more time and money. That followed a disappointing outlook for Intel’s factory operations earlier in the month.
“While 2024 should mark a bottom in many aspects of the business, the pace of the climb back up is unlikely to remain unclear,” Stifel wrote in a note to clients on Friday.
However, the company’s prospects are expected to improve from here. Revenue is forecast to rise 4.2% in 2024 after falling 14% last year, and to accelerate above 12% next year. That would represent its fastest pace of growth since 2018.
Still, the stock is one of the least loved in the chip industry, as fewer than one-fourth of analysts recommend buying. Its consensus rating — a proxy for its ratio of buy, hold, and sell ratings — is 3.33 out of five. Only Texas Instruments Inc has a lower consensus, at 3.27.
(Updates to market close.)
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