After a torrid September rally, a cautious price target and some profit-taking pressured the shares.
Shares of Intel (INTC -2.48%) fell as much as 5% on Monday and, as of this writing, were down only about 3.2%. There didn’t appear to be any new company-specific announcement driving the move. Rather, the decline appears to be a breather after a sharp September rally.
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Analyst caution meets a hot tape
One fresh input was a tempered analyst view for the stock: An analyst from Deutsche Bank reiterated a hold rating while setting a $30 price target (up from his previous target but still lower than where shares trade today). With the target below the current stock price, that stance can temper near-term enthusiasm and invite some profit-taking.
It comes on the heels of a powerful run fueled by policy support and high-profile partnership headlines (including a planned major investment by Nvidia) that raised hopes for an accelerated turnaround. After a burst like that, a giveback day like this is not unusual.
Valuation and the long view
Following the rally, shares no longer look cheap on near-term numbers. The stock’s price-to-sales ratio is close to 3, up from about 1.8 a year ago. But if Intel performs a successful turnaround, shares aren’t necessarily overvalued, either.
The longer-term case, therefore, still hinges on product road-map progress and the foundry strategy delivering competitive performance and better economics.
Still, with the stock up meaningfully in recent weeks, patience — or at least a tighter margin of safety — appears reasonable for investors weighing new positions.
Daniel Sparks and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel and Nvidia. The Motley Fool recommends the following options: short November 2025 $21 puts on Intel. The Motley Fool has a disclosure policy.