Intel shares (INTC) have fallen by over 5% on Tuesday amid a bearish tech stock market. US stocks fell on Tuesday as doubts about high-running valuations preyed on investors sifting through the latest flurry of quarterly earnings. The tech-heavy Nasdaq Composite (^IXIC) led the charge, sliding about 1.9%.
On Monday, Cisco Systems announced Cisco Unified Edge, a new computing platform for AI inferencing and agentic AI workloads outside of data centers. Cisco’s new systems can be deployed in retail stores, healthcare facilities, factories, and anywhere else data is created and processed. For the CPU, Cisco has chosen Intel’s Xeon 6 server CPUs. “By combining our silicon innovation with Cisco’s networking and compute expertise, we’re not just connecting edge locations — we’re extending the full power of the data center to wherever data needs to be processed,” said Intel Network & Edge Group VP Cristina Rodriguez in Cisco’s press release announcing the new product.
Despite a strong cash generation capability, analysts maintain a bearish outlook, with most price targets below the current market price. Currently trading at 37.35, there are worries of a further fall in INTC stock to as low as $30. At press time, INTC is trading near the top of its 52-week range and above its 200-day simple moving average, indicating a potential correction could send the stock lower.
CNN analysts are mixed on INTC shares, but most are cautiously holding onto shares until a more vivid price pattern is visible. While $50 is the highest current forecast for INTC, the low sees INTC falling to as low as $24. Intel has lost considerable market share to AMD in the server CPU market over the past few years. While Intel had a near-monopoly a decade ago, its unit share of the x86 server CPU market has fallen to just over 70%.
The fourth quarter results of the Intel (INTC) stock earnings report were low, despite good results in the first quarter of the year, showing that the company has lower performance than the analyst estimates. Intel cut EPS to $0.08 against expectations of $0.10, and revenue would also be 13.3 billion against forecasts of 13.4 billion.