What Happened?
Shares of computer processor maker Intel (NASDAQ: INTC) fell 3.1% in the afternoon session after an analyst note from Deutsche Bank tempered investor enthusiasm, leading to some profit-taking.
The bank reiterated a "hold" rating on the stock. While it raised its price target to $30 from a previous $23, the new target remained below the level where the shares were trading. The cautious view gave investors a reason to sell and lock in gains, especially after the stock had a strong rally through September. The move also came as the broader market showed weakness amid concerns over a potential government shutdown.
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What Is The Market Telling Us
Intel’s shares are extremely volatile and have had 35 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock gained 6% as the stock continued a multi-day rally amid reports that the U.S. administration was considering new measures to boost domestic chip production, alongside news of the company seeking strategic investments.
The potential government policy would require chipmakers to expand their U.S. production, possibly facing tariffs if they imported more chips than they made domestically. Such a move would benefit companies like Intel with a significant manufacturing presence in the U.S. Adding to the positive sentiment, the company reportedly approached both Apple and Taiwan Semiconductor Manufacturing Company (TSMC) about potential investments or partnerships.
These discussions followed recent multibillion-dollar investments from Nvidia and a 10% stake taken by the U.S. government, fueling optimism about the chipmaker's turnaround efforts. The session's gains extended a recent surge for the stock, which had risen more than 20% over several trading days on the news of potential outside investments.
Intel is up 64.6% since the beginning of the year, and at $33.28 per share, it is trading close to its 52-week high of $35.50 from September 2025. Investors who bought $1,000 worth of Intel’s shares 5 years ago would now be looking at an investment worth $642.82.
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