What's Going On With Intel Stock On Thursday?

Intel Corp INTC CFO David Zinsner expects to generate a “meaningful” amount of revenue from its contract chip manufacturing business in 2027, Reuters cites the company’s CFO at an investor conference on Wednesday.

Intel is currently discussing with 12 potential customers how to generate revenue in 2026 and additional cash in 2027.

The stock has fallen since reports indicated Intel’s failure to impress Broadcom Inc AVGO with its latest wafer production.

Intel stock plunged over 47% in the last 12 months as it failed to milk the artificial intelligence boom. Its contract manufacturing unit lost out to Taiwan Semiconductor Manufacturing Co TSM.

Intel scrapped its 20A manufacturing process for the more advanced 18A manufacturing process, Zinsner told Reuters. Recent reports indicated Intel weighing strategic options, including splitting its product design and manufacturing businesses.

Analysts and investors also speculate Intel is losing its Dow Jones Industrial Average position.

Intel expects a U.S. chip grant not until the end of 2024, posing another dampener for the company, especially after being called out by Republican Senator Rick Scott over its record downsizing plans.

Investors can gain exposure to Intel through Vanguard S&P 500 ETF VOO and iShares Core S&P 500 ETF IVV.

Intel Stock Prediction For 2024

Intel’s revenue growth in FY23 was -14.0%, reflecting the influence of various factors including the macroeconomic environment, demand for its products and services, and its position relative to competitors. This growth is a critical indicator for investors assessing the company’s future prospects.

Some macro factors that could impact the company's performance in the next year include higher interest rates, progress on reeling in inflation and labor market strength. The Fed's benchmark rate is currently at 5.33%, while PPI recently came in at 0.1%, growing 2.2% from last year. The unemployment rate was most recently reported as 4.3%.

An investor should pay attention to economic conditions to decide whether they think the macro environment is positive or negative for Intel stock. For real time economic data and breaking market updates, check out Benzinga Pro. Try it for free.

How does this stack up against Intel's peers?

Investors may also want to analyze a stock in comparison to companies with similar products or in similar industries. Intel operates in the Information Technology sector. The stock has experienced average annual growth of -28.66% compared to the 7.48% average of its peer companies. This is below the broader sector movement of Intel.

Price Action: INTC stock is up by 0.41% at $19.52 at the last check on Thursday.

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