Why Intel Stock Slumped Today
Key Points
Piper Sandler analyst David O'Connor initiated coverage of Intel stock this morning.
O'Connor likes Intel's prospects in the CPU market -- but only rates the stock "neutral."
The reason: Intel's shares have gone up so much already, there's little room left for improvement.
- 10 stocks we like better than Intel ›
Intel (NASDAQ: INTC) stock slumped 4.8% through 2:22 p.m. ET Thursday after the semiconductor stock received only lukewarm endorsement from investment bank Piper Sandler.
Image source: Intel.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
What Piper said about Intel
Piper Sandler analyst David O'Connor initiated coverage of Intel stock this morning. The big shift in the artificial intelligence industry away from "training" AIs and asking them questions ("inference") to using AI agents to accomplish tasks ("agentic AI") is a tailwind for Intel, "driving demand for its CPU server products," says O'Connor.
Weak CPU supply and strong CPU demand are likely to boost prices for Intel's products in this environment, boosting Intel to "high-teens revenue CAGR to 2030E." Nevertheless, the even stronger performance of Intel shares, which have more than quadrupled over the past year, limits further upside. For this reason, the analyst gives Intel stock only a neutral rating and predicts Intel will gain less than 10% over the next year, hitting perhaps $110 per share, as StreetInsider.com reports.
What it means for Intel stock
That's not enough to get investors excited. To the contrary, worries that 10% may be the most Intel investors can expect to gain appear to be discouraging investors from owning Intel today.
And here's another thing to worry about:
O'Connor opines that about 45% of Intel's current market capitalization assumes that the company's foundry unit will gain a whopping 15 points of market share in CPUs globally. That's possible -- but far from guaranteed. Should Intel's gains prove more muted than that, much of the last year's gains could evaporate.
Caveat investor.
Should you buy stock in Intel right now?
Before you buy stock in Intel, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Intel wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $410,024!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,372,815!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of September 10, 2026.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel. The Motley Fool has a disclosure policy.
Recommended Articles
