Intel Stock Rally Falters as Chipmaker’s Outlook Disappoints
Intel shares plummeted 17% to $45 on Friday, erasing most of their January gains after the company issued a weaker-than-expected quarterly forecast. The selloff followed a 50% surge in early 2023 that had made INTC one of the S&P 500's top performers.
Analysts from Bank of America, Jefferies and Wedbush cautioned that investor enthusiasm had outpaced fundamental improvements. While Q4 results beat estimates, executives warned of component shortages constraining Q1 supply - a revelation that exposed the stock's rapid ascent as potentially premature.
The reversal underscores how quickly market sentiment can shift for semiconductor stocks, even those with strong long-term narratives. Intel's case demonstrates the risks when price action detaches from operational realities.
