Shares in Intel (INTC) stock slid on Thursday after receiving a bearish stock forecast from analysts at Citibank. After recent job cuts and changes to its product mix, INTC’s stock growth compared to earlier this year has slowed. Further, several large chipmakers, including Qualcomm, Broadcom, and Apple, appear to be evaluating Intel’s foundry and packaging technologies. However, Citi analysts do not expect any of the possible engagements to become meaningful given Intel’s technical challenges and its lag behind TSMC.
Citi also says it still does not expect Intel’s foundry strategy to gain traction, citing industry feedback that Nvidia abandoned a packaging project with Intel due to technical issues. The bank said Intel remains years behind TSMC and reiterated its Sell rating on Intel. It kept a Neutral rating on Qualcomm.
At press time, INTC is trading in the middle of its 52-week range and above its 200-day simple moving average. Analysts have seen great growth out of INTC YTD, upwards of 66%. However, the last month has proven bearish, with shares skidding by 11%. Despite a strong cash generation capability, analysts maintain a bearish outlook, with most price targets below the current market price. Currently trading at $33, there are worries of a further fall in INTC stock to as low as $30.
Furthermore, analysts surveyed by CNN appear to have changed their tune on Intel (INTC) stock. Previously, many called the stock a buy, but now have shifted to a hold rating. Out of 46 analyst ratings on CNN, only 11% rate INTC a buy, while 70% opt to hold INTC and 19% call the stock a sell.