Will intel stock go up?

Will intel stock go up? A common question of every stock investor. Intel performs differently from investors’ expectations. The recent downtrend of Intel worried existing investors & also forced new investors to think twice before buying Intel stock. 

The semiconductor industry has a positive trend for upcoming years, but can Intel beat AMD, or can Intel expand the GPU market by competing against NVIDIA? A million-dollar question. 

So, to buy Intel stock or as an existing shareholder, you want to know, will Intel stock go up? Besides, your mind may have many questions on Intel stock but need help finding logical explanations. 

If you belong to the above folk, this blog post is for you. This article guides you on whether Intel stock will go up & also provides a detailed analysis to forecast long-term Intel stock prices.

Let’s start with the following.

Key takeaways:

• Intel has an excellent chance to grow on specific semiconductor-based products. 
• There is a good chance to outperform Intel stock in the upcoming time.  
• The recent downward trend of Intel does not indicate future growth.
• My analysis suggests Intel would be one of the outperforming stocks among semiconductor companies.
• Intel could give you good ROI in the long term. In the short term, you may face some stock price fluctuation.

Intel stock earnings report?

Intel’s stock earning report includes accounting & financial data. 

Below, the table details the accounting data of Intel’s earnings from 2019 to 2023.

The accounting earning table indicates poor performance over the year. Intel may face tough competition, or customers may be less interested in Intel products. To overcome this, Intel must upgrade its product & service and focus on some regions where the semiconductor industry can grow.

Intel also needs to focus on competitor weaknesses to increase sales. But manageable gross margin signals future growth of Intel stock.

So, what is the summary? The earnings report is just one financial metric that doesn’t display Intel’s complete scenario. Perhaps Intel has a plan to expand the market; therefore, they lower the margin ratio. So, my analysis regarding Intel stock is neutral here.  

Intel stock pe ratio?

Intel’s P/E ratio shows an upward trend, which suggests the overvaluing of stock. The investor has high expectations & Intel focuses on being overvalued. Overvalues goods for existing investors but also creates a risk of going down in the long term. 

But 2024 indicates a balancing approach for Intel & they lowered the price to earn about 24%. So, Intel understands the risk & declining over-valuation risk. Intel may be thinking about new investors by dropping its stock price. Investors’ numbers increase if Intel grows the market significantly. 

Isn’t a decrease in stock price terrible for investors? Yes, for the short-term, but good for the long-term. The company dropped its share price for many reasons & not all negatively impacted stock growth.

Let’s understand it from a simple mathematical example,

Intel wants to increase shareholder numbers by splitting or lowering stock prices. If the stock price is too high, then new investors will not purchase it because they think the stock has reached its maximum level and has no chance to grow. 

So, what will Intel do? Intel will do the following things.

Current stock price = $2 (this is not the current price of Intel stock; take it as an example)

Stock number= 10

New stock price = $1 (50% drop)

New stock number = 20

So, Intel doesn’t reduce stock value; instead, it is growing the market by increasing stockholders.  

This increasing number of shareholders will create positive acceptability on Intel stock, indirectly increasing stock value.

So, my analysis here would be positive on Intel’s stock price.

Intel stock peg ratio?

Intel’s price/Earnings to Growth ratio shows more than its standard measure 1. That means Intel stock has overvaluation & needs to perform better according to market price & projected growth.

Intel must reduce the peg ratio to assure investors that the growth trend will take time to finish. This ratio also creates a stock price fluctuation risk that may affect shareholder expectations. 

So, my prediction on Intel stock would be neutral here.  

Intel stock ratio?

The working capital ratio falls between 1.2 and 1.6, the standard measurement. This ratio indicates Intel’s solid monetary status. This ratio also shows Intel’s healthy financial solvency to pay short-term obligations. 

The quick ratio also indicates a strong ability to pay its debts, which indirectly helps to increase the stock price. 

The Enterprise Value to EBIT is above standard 10, which suggests Intel’s tough competition with a similar type of company. Intel must lower Enterprise Value to EBIT to increase stock price.

The interest coverage ratio has gone down over time. So, Intel has a lower capacity to pay interest for loan money. Intel has limited borrowing money & as a result, decreased its Interest Coverage Ratio.

The debt-to-capital ratio seems under the standard range of 0.3 to 0.6, which suggests less debt than capital. This Debt-to-Capital Ratio value also means Intel’s capital gain is increasing daily, which is a good sign for the stock price. 

Return on Equity doesn’t match the standard value of 20, which indicates Intel generates less income from its business. So, there is a mismatch between Equity & net income, which could negatively impact stock price. Return on Equity could be lower for short-term risk, or Intel investing more profit by lowering Equity. So, Intel has an excellent chance to come back. 

Overall, the ratio performance doesn’t indicate the high performance of Intel stock but suggests many signals that it will be profitable in the coming times. My opinion regarding Intel’s stock price is favorable.

Intel EPS history?

Below, the table details Intel’s stock dividend history from 2020 to 2023. 

Intel share price forecast?

Analysts are bullish on intel stock price & they forecast a positive upward trend. Most of them agree that Intel stock will sequentially rise over time. That means your investment in Intel shares will give you a good return on investment.

 The table details Intel’s stock forecast for 2024, 2025, 2026, 2027, 2028, 2029 & 2030. 

The above table shows a minimum of 41% & maximum of 69% upward trend over seven years. That means the stock price could fluctuate up to 28%, but overall, it is a positive sentiment. 

In finance, a successful investment (any investment) depends on feasible & unfeasible factors. The Feasible factors include historical accounting data (Income statement, Balance sheet), Financial Data (past ratio performance), & industry trends, whereas unfeasible factors include instant investment environment change & political instability.

There are many factors to be a successful stock investment & it would not be a strategic analysis if you think all elements will favour. If analysis indicates a 100% return, we can get below 100% but above 50%, which is deviance because the stock analysis could vary depending on individual parameters. 

If you want to learn something new today, let’s understand how deviance works for stock investment from a mathematical scenario.

Charles buys $100 worth of Intel stock with each $10. Expert stock analysts suggest 100% growth after 7 years.

Original stock price=$10 

New stock price= $20 (after 100% increase)

Number of stocks=10

Expected price= Stock numbers × new price

                      = 10 × $20

=$200

Deviance (maximum)= 49%

Deviance (maximum) price = $49 (49% × $100, i.e., forecasted growth)

Deviance (minimum)= 1% (100 – 99) 

Deviance (minimum) price= $1 (1% ×100) 

Maximum Stock price down = Expected price – Deviance

= $200 – $49 

=$151

 Minimum Stock price down = Expected price – Deviance

= $200 – $1

=$199 

Should you be bullish on the Intel stock analysis that different analysts give? The straight answer is no. I have no finance background, but I am interested in investing in stock. What should I do if I rely on something other than stock analysts’ forecasts?  

The stockholders asked me the above question while working as a financial analyst. I am not discouraging you from investing in the stock but instead suggesting how effectively you can do it. Be an investor for yourself, so first, learn, then invest.  

But you are reading this blog article to know the forecasted price of Intel stocks so that you can decide on whether to buy. Am I right? 

My forecasted price for Intel stock after seven years is 

it would increase from the current market price ($45.81 based on article writing date) to a minimum of 35.48% (69.56 -34.08, i.e., 49% × 69.56) to a maximum of 68.864% (69.65 – 0.6956) depends on associated factors.

So, Maximum Intel stock price after 7 years= 45.81+ 31.55 (68.864%×$45.81)

   =$77.36

Minimum Intel stock price after 7 years= 45.81+ 16.253 (35.48% ×$45.81) 

=$62.063

Intel stock buy or sell?

Yes, Intel stock is a buy. There are many metrics that indicate a good ROI in the upcoming time.

Below I have given a detail analysis on Intel stock.

• Intel market cap

The trend is computed comparing by previous years.

Intel significantly grows its market cap over time, which indicates growing adoption. Market cap started with 21% growth & reached about 80% over five years. Trends are not always parallel but rather a combination of ups & downs. This ups & downs is a common industrial scenario because implementing new projects or investments can fluctuate the overall market. 

In short, Intel’s market cap shows enough growing potential for the future, which is suitable for stock investment.

• Intel stock splits

Intel has a long history of splitting stock often. Since 1979, Intel has broken its stock 8 times & there is no initial announcement to split in upcoming days. 

Below is the table detailing intel stock history splits. 

• Intel stock price analysis

The price chart shows an ups & down trend, which suggests the company’s bad performance. The stock price hit below $26 & ups $66. The stock price continuously drops from the end of 2022 to mid-2023 & reaches $46.66 at the closing of 2023. 

The price analysis of Intel stock doesn’t signal a future upward trend. Instead, the price graph suggests a potential loss of Intel stock. 

But past performance doesn’t guarantee future price. So, it is tough to say that buying Intel stock would be worthless or profitable. 

• Stock life cycle

A stock has four life stages & each phase has different behaviors called the stock life cycle. Let’s understand stock life cycle in details.

Initial is the primary stage of stock investment. In this phase, the company will try to increase acceptability among shareholders with bearable prices. As an investor, you will experience minimum stock price fluctuation in the early stages.

In accumulation, the company will start to accept money from different stock buyers. The collection will gradually trend upward, showing a stock price hike. If you are a short-term investor, this is the perfect time to sell your stock.

At a flat level, the stock will reach a peak level for a specific time, then start to fall & finally get to the initial stage. A flat will give you a maximum price if you are a long-term investor. 

You will see a gradual price fall without recovery. The fall stage stops when it drops the maximum price to meet the initial phase. 

Then again, the stock revives with a positive trend, acquisition, & company policy & follows a repeat pattern. The growth level of individual phases could vary from the newly restored life cycle.  

Therefore, Intel has entered a new initial stage after a flat level, which means it has enough potential to hike prices in the upcoming years. 

So, my prediction on Intel stock would be optimistic. 

• Semiconductor company market share

The above graph shows Intel is the seventh-largest semiconductor company by market capital. AMD is the closest competitor of Intel &, and NVIDIA is quite impossible for Intel to beat. There is a considerable market share gap ($1,059.85 billion) between Intel & NVIDIA. Intel has to perform more than NVIDIA, about six times higher, which is challenging.

Conversely, AMD has a $27.51 billion ($193.66-$166.15) market share compared to Intel, indicating a solid possibility for a beat if Intel focuses on some strategic planning, such as home production. [ Data sources= Statista ]

It will be challenging for Intel to beat competitors like ASML and Samsung, who specialize in specific semiconductor products. Intel can gain some portion of the market but could not be a market leader.

If Intel enters a new semiconductor market, it will get some portion due to the high demand for semiconductor-based products. However, similar types of start-ups could be a threat if Intel charges a high price. Therefore, cost-effectiveness could be a challenge for Intel. But mass manufacturing & continuous acceptance can help Intel to balance costs.

In short, if there is a positive industry trend with increased demand, Intel will rise.      

Concluding Thought

 Many metrics show Intel’s stock price will increase in the upcoming days. But Intel will face two main competitors, AMD & NVIDIA if it focuses on market expansion beyond its dominating area. Semiconductors are a growing industry, but that doesn’t ensure Intel’s sole market dominance.

Intel has some significant challenges, but it will be a high-performing stock in the coming days. The semiconductor industry has a growing acceptance that creates enormous demand. If Intel makes enough strategy, it will undoubtedly be a high-growth stock.

Frequently Asked Questions (FAQ)

Intel stock dividend? 

Intel’s dividend yield is 1.08%, with an annual dividend of $0.501. Intel pays quarterly dividend & the recent ex-dividend date is Nov 6, 2023. The dividend growth is not positive & it is estimated to be -49.33%.

There has yet to be a recent declaration about dividend pay to shareholders & no plan. It is also notable that Intel reduced its quarterly dividend by 65.9% in October 2023 & reinvested to expand the market in the upcoming years. 

Disclaimer

The information provided in this article is author’s view & only for educational purposes. Also, the intention of this article is not hurting any stock analyst. This is not a sponsor post & not an investment advice. Do your research before making any important financial decision. Therefore, FinanceIdeas.org will not be liable for your financial loss.