TLDR:
- Intel’s stock price has dropped 57% over the past three years
- The company’s revenue has declined 16% per year recently
- Intel faces challenges in its core PC and server markets
- CEO Pat Gelsinger remains confident and recently purchased shares
- Analysts have a bearish outlook, with earnings estimates being revised downward
Intel Corporation, one of the world’s largest semiconductor manufacturers, has been facing significant challenges in recent years.
The company’s stock price has seen a substantial decline, dropping 57% over the past three years. While there has been a recent uptick of 20% in the last month, the overall trend remains concerning for investors.
The semiconductor giant has been grappling with a decline in revenue, which has fallen by approximately 16% per year.
This drop in revenue has been attributed to weakening demand in Intel’s core PC and server markets. The company’s earnings per share (EPS) have also been negatively impacted, with analysts revising their estimates downward.

In the third quarter of 2024, Intel underperformed compared to the broader market. While the Russell 1000 Value Index generated a gain of 9.43%, Intel’s stock continued to face pressure. The company’s turnaround efforts have been slow to materialize, causing concern among investors about its long-term competitive position in the rapidly evolving semiconductor industry.
Despite these challenges, Intel’s CEO Pat Gelsinger remains optimistic about the company’s future. In a show of confidence, Gelsinger purchased 12,500 shares of Intel stock in early August 2024, following the latest quarterly earnings report. This insider buying, valued at approximately $250,000, suggests that the company’s leadership believes in its potential for recovery.
Intel has been implementing cost-cutting measures to address margin pressures. In August 2024, the company announced a $10 billion cost-savings target, demonstrating its commitment to improving financial performance. These efforts are aimed at streamlining operations and enhancing profitability in the face of market headwinds.
Looking ahead, Intel faces a challenging environment in the second half of 2024. The company expects its upcoming earnings release on October 24th to show a loss of $0.03 per share, reflecting the ongoing difficulties in its core markets. However, some analysts believe that the PC and server markets may be undershipping, potentially leading to a strong refresh cycle in the coming year.
Intel’s product positioning is expected to improve in 2025, which could help the company regain market share during a potential cyclical upswing. The company’s assets are still considered valuable by some observers, despite the current market pessimism.
Investors and analysts remain cautious about Intel’s near-term prospects. The company currently holds a Zacks Rank #4 (Sell), indicating bearish earnings estimate revisions.
The consensus EPS estimate for the current fiscal year has been reduced by 85% over the past year, reflecting the significant challenges Intel faces.
As of October 11, 2024, Intel’s stock closed at $23.56 per share, with a market capitalization of $100.743 billion. The company’s one-month return was 12.67%, but its shares have lost 35.56% of their value over the past 52 weeks.
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