Intel (INTC) shares have edged slightly higher over the past week, sparking some quiet interest among investors. With steady single-digit gains, market watchers are analyzing what is next for the longtime semiconductor heavyweight’s stock.
See our latest analysis for Intel.
While Intel’s 1-year total shareholder return has quietly outpaced its recent share price gains, the momentum hasn’t matched that of the market’s hottest names. After a long stretch of modest ups and downs, sentiment is now shifting as investors weigh growth prospects against an improving earnings outlook and past volatility.
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Given Intel’s smooth but unspectacular run compared to peers, investors now face a pressing question: is the stock currently undervalued and poised for a comeback, or is any upside already factored into the price?
The most widely followed narrative places Intel’s fair value significantly below its last close of $35.94. This suggests that the stock may currently be trading at too high a price, despite recent optimism and strategic shifts.
The analysts have a consensus price target of $22.061 for Intel based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $28.0, and the most bearish reporting a price target of just $14.0.
Want to know what’s behind this sharp gap between Intel’s current price and fair value? The narrative is based on key forecasts for profit turnaround, earnings expansion, and a bold profit multiple typically seen with market favorites. Curious which future milestones might make or break Intel’s story? The full narrative reveals the financial targets that underpin this valuation.
Result: Fair Value of $22.06 (OVERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, sustained manufacturing issues and uncertainty over advanced-node execution could still challenge Intel’s recovery and threaten the optimistic outlook that analysts predict.
Find out about the key risks to this Intel narrative.
Looking at Intel from another perspective, our DCF model values the stock at $47.95, which is well above its recent share price. This approach suggests Intel could actually be undervalued despite cautious analyst targets and current earnings losses. Which story will ultimately play out for investors?
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