Intel (INTC.US) Faces Worst Post-Earnings Selloff in Nearly 50 Years! Major Institutions Lower Target Price, While Technical Analysts See a Buying Opportunity

According to Zhihui Finance APP, Intel (INTC.US) saw its stock price plunge more than 28% last Friday following the release of disappointing results for Q3 2026. The financial report showed that Intel’s Q3 revenue grew by 21% year-on-year to $16.5 billion, and adjusted earnings per share reached $0.52, both exceeding market expectations. However, performance across business units was mixed. The Data Center and Artificial Intelligence Group (DCAI) became the core growth driver, with Q3 revenue surging 78% year-on-year to $7.318 billion, operating profit of $3.039 billion, and a profit margin of 41.5%. The Client Computing and Physical AI Group (CCPG), related to personal computers (PC), performed weakly, with revenue falling 5% year-on-year to $8.097 billion and operating profit also shrinking.

Intel’s management indicated that demand for server CPUs is surging, but supply has become the main bottleneck. The company is addressing the shortage of Xeon processors by increasing factory capacity and optimizing yields. The company also stated that the slowdown in the PC market is expected to continue at least until the first half of 2027.

In its guidance, Intel expects Q4 revenue to be between $15 billion and $16 billion, and adjusted earnings per share to be $0.25, both significantly below expectations. Part of the performance pressure is attributed to an explosion at its factory in Israel, which is expected to reduce Q4 revenue by approximately $300 million and lower gross margin by about 200 basis points. The company also raised its 2026 capital expenditure forecast from $18 billion to $20 billion and expects further increases in 2027.

After the release of Intel’s Q3 results, major Wall Street firms JPMorgan Chase and Bank of America Securities both lowered their target prices for the stock. JPMorgan maintained its “Neutral” rating but cut the target price from $85 to $80, while Bank of America Securities downgraded its rating from “Buy” directly to “Neutral,” slashing the target price from $145 to $100.

However, on the Seeking Alpha platform, several analysts have raised their ratings on Intel. Analyst Mike Zaccardi, based on technical analysis, believes that this sell-off is the worst Intel has seen since the 1970s, but also presents a key buying opportunity. Mike Zaccardi wrote: “Intel’s stock price has still risen 87% since 2026; in my view, the current plunge seems to present a key technical buying opportunity.” He raised his rating on Intel from “Sell” to “Buy.”

Analyst Bohdan Kucheriavyi also upgraded his rating for Intel. He pointed out that considering the company’s revenue increased by about 21% year-on-year and adjusted EPS beat expectations by $0.12, “the earnings report was quite good.” However, the analyst also wrote: “The problem is that Q4 performance is expected to be significantly weaker than Q3.” Therefore, he upgraded his rating from “Sell” to “Hold.”

Analyst Kenio Fontes based his upgrade for Intel on the improvement of the margin of safety after the stock’s plunge. Kenio >The Asian Investor also published a similar upgrade report, stating that after the sharp drop in Intel’s share price, its valuation has “returned to normal,” and the stock price is currently 50% lower than a year earlier. The analyst wrote: “Intel’s share price has dropped by about 50% from the high of around $142 over the past year, and its valuation has reverted to a level closer to the chip manufacturer’s historical averages.”

However, Quad 7 Capital, head of Seeking Alpha’s Investment Research Team, downgraded Intel’s rating from “Hold” to “Sell.” The institution pointed out that Intel’s share price is still at a level “that has fully priced in perfect expectations,” but the company’s future performance is beginning to show that these high market expectations are not being met. Quad 7 Capital stated: “With full-year capital expenditures (CapEx) expected to remain high and Q4 profitability rapidly weakening, the stock’s currently high valuation premium is becoming less and less sustainable.”