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The Intel Corp (INTC) Stock Price Has Fallen 31.1% YTD. Can It Recover?

Simon Mugo trader
Updated 6 Jul 2022

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Key points:

  • The Intel Corp (INTC) stock is down 31.1% in 2022.
  • However, the company is doing much better than its peers.
  • So, can Intel’s share price recover? Read on to find out.

The Intel Corporation (NASDAQ: INTC) stock price has fallen by 31.1% in 2022 amid a broader market selloff despite the rising demand for semiconductor chips. However, Intel’s stock price decline is not unique since most chip manufacturers have seen their shares plunge significantly.

We have companies such as AMD, whose stock is down 50.77% today. Taiwan Semiconductors, whose stock has fallen 41.63% to date, and Nvidia, is down 50.34% as of today. Therefore, it seems like Intel is doing much better than its peers.

Also read: The Best Tech Stock To Buy Right Now.

For many years, experts have warned that Intel’s overdependence on making central processing units (CPUs) for desktop computers poses a significant challenge to the company’s future growth. Finally, Intel’s management has been listening. The company has taken steps to challenge its peers who do not have a significant presence in the personal computing space. For example, the company recently launched new chips targets at the bitcoin mining industry, making its first foray into cryptocurrency mining. The new chips were well-received by some crypto mining firms, but competition in this area remains stiff.

Intel has also intensified its partnership with the personal computer manufacturers to continue offering its Intel chips within their PCs after losing Apple Inc as a customer as the tech giant moves on to using Apple silicone chips on its Macbooks and iMacs.

The company faces stiff competition from AMD in the PC as the latter’s Ryzen chips have attracted a loyal following. For many years, Intel has struggled to scale down the size of its chips and is still primarily stuck with its 7nm manufacturing process.

On the other hand, its competitors, such as TSMC, have been manufacturing 5nm chips and are now moving to 3nm. Therefore, the company has to make a breakthrough or risk being left far behind, given that Samsung recently announced that it had started producing 3nm chips.

Overall, Intel is a legacy company that has struggled to keep up with emerging trends in the manufacture of semiconductor chips and has been written off by many analysts. Still, it is interesting that the chip manufacturer is doing much better than most of its peers.

While the company still has to catch up on some technologies, it remains a dominant player in the PC market. In addition, it has recently expanded to producing data centre chips and other niche sectors.

*This is not investment advice. Always do your due diligence before making investment decisions.

Intel stock price.

Intel stock price 06-07-2022
Source: Tradingview

The Intel stock price has fallen by 29.39% in 2022 amid a broader market selloff. Can it recover?

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading