Competition Continues Eating Up Intel; the Company's Year-over-Year Stock Return Dropped to -35%

By AltIndex Research · 3 min read · October 13, 8:00 pm

While its rivals Nivida and other silicon chip companies are seeing double-digit growth, proving to be the best-returning investments in the 2024 AI hype, Intel trails behind the market, causing its stock return to remain deep in the red zone.

According to data presented by AltIndex.com, as the worst performer among the top AI chip makers and one of the worst-performing S&P 500 stocks, Intel has a negative year-over-year return of -35%.

A Double-Digit Negative Stock Return Puts Intel in the Bottom 10% of Its Industry

The California-based chip maker Intel is definitely not a part of the hype surrounding the AI market. While its biggest rivals, Nivida, IBM, and AMD, continue seeing double and triple-digit growth rates, Intel shares have been a victim of swelling competition, significant manufacturing missteps, and an extended decline in the company's business. Although some analysts went so far and called Intel a "broken company," that’s not far from the truth. Intel's financial results and stock return figures don't show much optimism.

In the first quarter of the year, Intel's earnings before interest, taxes, depreciation, and amortization hit $1.8 billion, its second-worst Q1 figure in the past two decades. Things got even worse in Q2, with the company reporting a net loss of $1.6 billion, compared to a profit of $1.5 billion in the same quarter of the previous year. The worst-than-expected financial results caused Intel's share price to plummet, bringing new losses to investors.

As of October 11, Intel's year-over-year return stood at -35%, undoubtedly the worst figure among the largest chip makers. In comparison, Nvidia's year-over-year stock return hit over 188% last week. IBM stock jumped by 68% in this period and AMD's by more than 50%. Apple and Alphabet followed with 28% and 15% returns, respectively.

A deeper insight into Intel's stock return shows an even worse performance. Since the beginning of the year, Intel shares plunged by 53%, while its three-year and five-year returns stand at -52% and -48%, respectively. These double-digit negative stock returns have placed once a tech giant into the bottom 10% of its industry.

Intel Stock Price to Halve in the Following Years

While a 35% decline year-over-year is quite enough, Intel's stock price drop will likely continue in the future. According to the alternative data platform AltIndex, which analyzes millions of data signals from thousands of publicly traded companies to forecast future price movements and overall company performance, Intel's AI price target is expected to reach $23.2 next year. According to AI projections, this figure could halve in the following years and drop to $14.3 by 2030.