Intel Shares Experience Worst Month in Decades: Intel Corp. experienced a significant downturn, as its shares dropped 31% in April.
This marked the company’s worst monthly performance in over 20 years, and it faces challenges in achieving a successful turnaround.
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Stock Decline
The shares fell by 2.8% on Tuesday alone, culminating in the most substantial one-month percentage decrease since June 2002.
The stock has plummeted 39% this year, making it the poorest performer on the Philadelphia Stock Exchange Semiconductor Index,
which fell by 4.7% in April but is still up 12% for 2024.
Most of Intel’s sell-off occurred following last week’s financial results, which included a weak forecast.
This forecast indicates that the company’s efforts to turn around will require more time and additional investment.
This comes on the heels of a disappointing projection for Intel’s manufacturing operations earlier in the month.
Forecasts Regarding Intel
According to Stifel in a client note on Friday, ”
While 2024 is expected to represent a low point in many aspects of the business,
the trajectory for recovery remains uncertain.”
However, the company’s prospects are brighter.
Revenues are projected to increase by 4.2% in 2024 after a 14% decline in the previous year,
and growth is expected to accelerate to over 12% the following year, marking the fastest growth rate since 2018.
Intel Least Popular
Despite these improvements, Intel’s stock remains one of the least favored within the chip sector,
with less than a quarter of analysts recommending a buy.
Its consensus rating, which reflects the balance of buy, hold, and sell recommendations,
stands at 3.33 out of 5.
Only Texas Instruments Inc. has a lower rating in this sector, at 3.27.
Intel Shares Experience Worst Month in Decades