On Wednesday, March 19, 2025, Intel Corporation (NASDAQ: INTC) experienced a significant dip in its stock price, dropping 6% during early trading hours. The stock opened at $24.90, down from a previous close of $25.92. As the markets fluctuated, Intel’s shares last traded at $24.28, amidst heightened speculation about the company’s future and strategic realignments.
The decline came shortly after Paul Liu, a prominent figure as the head of Taiwan’s National Development Council and a board member of Taiwan Semiconductor Manufacturing Company (TSMC), dismissed rumors regarding TSMC’s interest in acquiring Intel’s foundry business. Liu clarified to lawmakers that there have been no discussions at the board level about such a transaction, quelling apprehensions that had surfaced in previous weeks.
Efforts to speculate further on a possible TSMC-Intel partnership had begun last week, as various reports, including one from Reuters, revealed that TSMC had approached American chip designers like Nvidia, Advanced Micro Devices, and Broadcom regarding potential stakes in a joint venture focused on operating Intel’s facilities. This venture could manage Intel's foundry division, which manufactures chips based on customer specifications—an area of growing importance as chip demands rise globally.
The optimistic projections about a potential partnership contributed to a 29% rise in Intel’s stock year-to-date prior to the recent decline. However, on this day, the stock seemed susceptible to profit-taking strategies after gains related to the appointment of new CEO Lip-Bu Tan, who previously led Cadence Design Systems and joined Intel to revamp the company’s approach to chip design, manufacturing operations, and artificial intelligence (AI) strategy.
In an announcement made on March 12, Tan expressed excitement about joining Intel, stating, “I am honored to join Intel as CEO. I have tremendous respect and admiration for this iconic company, and I see significant opportunities to remake our business in ways that serve our customers better and create value for our shareholders.” He also emphasized his objectives to enhance Intel's foothold in the AI chip production market while establishing an annual AI chip release cycle.
Tan's leadership ambitions include a stronger focus on Intel Foundry, the company’s division that collaborates with notable clients like Microsoft. This renewed concentration on manufacturing aims to keep pace with mounting competition from other tech giants and resolve Intel’s financial challenges, which had plagued the company recently.
As the day progressed, trading volume was noticeably higher than average, with over 52 million shares changing hands—about 26% lower than the usual session volume. Analysts offered varied insights regarding Intel's stock movement and future outlook. Notably, several financial institutions have recently adjusted their ratings and price targets for Intel’s shares amid changing market conditions.
Wells Fargo & Company reduced its price objective for Intel from $28.00 to $25.00 and maintained an “equal weight” rating. Truist Financial similarly lowered its price target to $21.00 from $22.00, while Citigroup downgraded the stock from $22.00 to $21.00, designating it with a “neutral” rating. Meanwhile, Bank of America raised its target price for Intel from $19.00 to $25.00 and upgraded the rating from “underperform” to “neutral,” a move reflecting cautious optimism about Tan's leadership.
Intel's stock performance has recently struggled, particularly reflected in their earnings reports. The company revealed a loss of $0.02 earnings per share for the last quarter, falling short of analysts' consensus estimate of $0.12. With this financial backdrop, Intel registered a negative net margin of 35.32% and a return on equity of negative 3.27%. Stock analysts predict that Intel will post further losses of $0.11 earnings per share for the current fiscal year.
Despite the turmoil, average ratings for the stock remain mild, with four analysts issuing sell ratings and twenty-eight setting hold ratings; only one analyst has issued a buy rating. According to MarketBeat.com, Intel currently has a consensus rating of “Hold” alongside an average target price pegged at $27.04, indicating a need for a careful review of its performance moving ahead.
Moreover, institutional investors have shown an uptick in activity surrounding Intel. Notably, Quest Partners LLC significantly grew its stake in Intel by 7,370.6%, amassing 1,270 shares now worth $30,000. Such investor movements underscore the interest in whether Tan’s strategies will turn Intel's fortunes around.
As uncertainty lingers about the company's future—particularly regarding its strategic initiatives and competitive positioning—Intel's current standing in the chip industry continues to be intensely scrutinized. Enthusiasm surrounding Tan’s visionary plans for rejuvenating Intel must contend with practical challenges in a rapidly evolving market.
Whether Tan's leadership will spur a revival for Intel remains to be seen, but many in the industry are closely watching the company's movements. The fate of one of America’s leading semiconductor manufacturers hangs delicately in the balance amid rising competition and the pursuit of innovation and market relevancy.
