Intel Stock Declines Amid Valuation Concerns and Sector-Wide Tech Weakness
Intel shares tumbled over 4% Tuesday after Bank of America downgraded the stock, citing an unsustainable rally detached from fundamentals. The chipmaker's 80% year-to-date surge—fueled by government backing and high-profile partnerships—now faces scrutiny as analysts highlight the absence of a clear AI strategy.
Tech stocks broadly retreated amid renewed U.S.-China trade tensions, with Intel among the S&P 500's worst performers. While recent deals with Nvidia and speculated Apple collaborations boosted sentiment, Bank of America contends the valuation overlooks structural challenges in Intel's business.