After the recent big meeting, Intel (NASDAQ: The price of INTC shares) property has received a downgrade from Wall Street, and an analyst is expressing his concerns.
Notably, INTC was downgraded by Northland Capital Markets from ‘Outperform’ to ‘Market Perform’. The decline comes after Intel shares have risen nearly 500% over the past year, with the stock trading at $119 as of press time.
The meeting has forced semiconductor giant being the most important part, according to the market mentioned by experts. Northland analyst Gus Richard also pegged the company’s price at art company.
Although Northland acknowledged that Intel is making significant progress on its recovery strategy, the analyst cautioned that the current share price is already showing more than expected.
At the same time, Richard expects earnings to rise as demand for server components strengthens in the coming quarters.
However, Northland projects that total data revenue could decline in 2027 as hyperscale technology companies face financial challenges, which could limit future growth in the smart manufacturing market.
Under Northland’s favorable conditions, Intel’s data center business could grow by 40% in 2027, leading to earnings of $3.20 per share. Despite these expectations, the stock would still trade for about 38 times its expected earnings, a price the company considers expensive.
Additional valuation metrics also point to higher prices for Intel shares. The company’s ratio to EBITDA currently stands at about 43.7 times, indicating that money continue to add value to the stock despite the uncertainty surrounding AI’s long-term value and future trends.
Wall Street beware of INTC stock
Meanwhile, in addition to the opinion of Northland Capital Markets, the rest of Wall Street is expressing doubts about INTC shares.
To this end, according to data from 38 experts who are followed by TipRanksIntel shares have a consensus rating of ‘Hold’, with 25 analysts recommending a hold rating, 10 giving a buy rating, and three recommending a sell.
Intel’s 12-month moving average price is $86.94, representing a decrease of 26.9%. Analysts’ estimates vary widely, with the highest forecast reaching $150 while the lowest target is $30.
The forecast raises doubts about whether Intel can continue its growth after the stock surged last year amid sustained optimism about its innovation and AI-related opportunities.
While some analysts remain bullish on Intel’s recovery and longing for early returns, others seem to be concerned that the current valuations may be already falling short of the expected recovery.
