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Stock Spotlight Designer 05/28/2024

Special Instructions: Gen Z Voice

About Intel Corporation (INTC)

Intel Corporation designs, develops, manufactures, markets, and sells computing and related products and services worldwide. It operates through various segments including Client Computing Group, Data Center and AI, Network and Edge, Mobileye, and Intel Foundry Services. The company's product portfolio includes central processing units (CPUs), chipsets, system-on-chips (SoCs), multichip packages, mobile and desktop processors, graphics processing units (GPUs), domain-specific accelerators, and field programmable gate arrays (FPGAs). Additionally, Intel offers memory and storage solutions, connectivity and networking products, and other semiconductor products.

Intel also provides silicon devices and software products, along with optimization solutions for workloads such as AI, cryptography, security, storage, and networking. The company develops advanced driver assistance systems (ADAS) and autonomous driving technologies. Intel's strategic agreements with Synopsys, Inc. and ARM enable chip designers to build optimized compute SoCs on the Intel 18A process.

Founded in 1968 and headquartered in Santa Clara, California, Intel serves original equipment manufacturers (OEMs), original design manufacturers (ODMs), cloud service providers, and other manufacturers and service providers.

Key Metrics

  • Sector: Information Technology
  • Industry: Semiconductors & Semiconductor Equipment
  • Market Capitalization: $130.77 billion
  • EBITDA: $10.5 billion
  • P/E Ratio (TTM): 31.67
  • PEG Ratio: 0.4346
  • Wall Street Target Price: $38.50
  • Dividend Yield: 1.63%
  • Earnings Per Share (EPS): $0.97
  • Revenue (TTM): $55.24 billion
  • 52-Week High: $50.92
  • 52-Week Low: $29.26


Investing in Intel Corporation (INTC) carries a high level of risk, particularly over the past year. The stock has experienced significant volatility with an annualized standard deviation of 40.22%, compared to the S&P 500's 11.53%. This indicates that INTC's price movements have been more erratic than the broader market.

Intel's Sharpe ratio over the past year is -0.11, which is considerably lower than the S&P 500's 1.94. A negative Sharpe ratio suggests that the stock has underperformed relative to its risk level. Additionally, Intel's maximum drawdown over the past year was -40.78%, highlighting the potential for substantial losses during downturns.

The Value at Risk (VaR) metric indicates that with a 99% confidence level, the maximum expected loss in a single day is -6.65%. This is higher than the S&P 500's VaR of -3.06%, reflecting greater potential for daily losses in INTC. However, there is also potential upside; the maximum gain in a single day with a 99% confidence level is estimated at 6.02%, compared to the S&P 500's 2.61%.


News Analysis

Recent news has highlighted both challenges and opportunities for Intel Corporation. According to an article from InvestorPlace on May 28, 2024, technology stocks have been performing well overall, but some—including Intel—are perceived as overpromising and underdelivering.

A positive outlook was shared by Schwab Network on May 28, 2024, where analysts discussed being bullish on Intel alongside Palantir and Palo Alto Networks (Schwab Network). This suggests that despite recent performance issues, there are still strong technical trends supporting Intel's future growth prospects.

Potential legal challenges are also in play. A class action lawsuit for securities fraud has been announced by The Law Offices of Frank R. Cruz (PRNewsWire, May 28, 2024). This could impact investor sentiment and lead to increased scrutiny of Intel's financial practices.

An analysis by Seeking Alpha on May 28, 2024, argued that the recent selloff in Intel's shares does not make sense given the company's improving client computing business and potential federal subsidies for its foundry business (Seeking Alpha). This perspective suggests that market reactions may be overly pessimistic and that there could be significant upside potential.