SAN FRANCISCO – SEPTEMBER 14: The 13th Intel Developer Forum event feature focuses on Intel’s technology and platform roadmap directions for the next year and beyond in the areas of digital enterprise, mobility, embedded and communications, software, manufacturing and research which intel is a world leader in. In the Moscone Center on September 14, 2010 in San Francisco, California.

The Intel stock price is struggling today after the company delayed another chip. The stock dropped by more than 1.8% to $55. This brought its total market capitalization to more than $225 billion. Its top competitors like AMD and Nvidia saw their stock prices jump. 

Intel bungles another chip

Intel was the market leader in the semiconductor industry for years. However, recently, the company has become a victim of its own success. It started by bungling the release of its 7nm and 10nm chips and delaying some of its important products. 

The long track record of underperformance continued after the company announced that it will delay its Sapphire Rapids data center processor. It now expects production to start in the first quarter of 2022. 

In a statement, Lisa Spelman said that the firm needed time to incorporate additional validation time and streamline the development process. Going by the compampany’s track record, there are high chances that the products will not go into production in the said period. Consider what the management said about the product in the previous earnings statement.

“Overall, our 2023 roadmaps are firm and under execution, and our 2024 and 2025 plans are well underway to provide unquestioned leadership product in every category we participate in. The Intel innovation machine is fired up.”

The data center business is a highly important one for Intel and other semiconductor companies. For one, it is highly competitive because of the level of consolidated client base. Indeed, AMD has continued to grow its market share in the data center industry in the past few years. So, what next for the Intel stock?

Analysts have mixed opinions about the Intel stock price. In a recent note, analysts at Bernstein downgraded the stock target to $43. On the other hand, those at Citi, Jefferies, Benchmark, and Bank of America believe that the stock will remain above $60.

Intel stock price prediction

Intel stock price
Intel stock price chart

The daily chart below shows that the INTC stock price has been under pressure lately. After rising to a year-to-date high of $68 in April, the stock has crashed by almost 20%. It has yet to fill a gap that formed on April 22. The stock has also moved below the 50-day and 100-day exponential moving averages (EMA). It is also at the same level as the 50% Fibonacci retracement level. 

Therefore, in my view, I suspect that the Intel stock price will resume the downward trend and move below the important support at $50. On the flip side, a move above $60 will invalidate the bearish thesis. You can read my AMD stock price prediction here.

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