Intel (NASDAQ:INTC) Faces New Market Share Losses
Things have not been looking bright for chip stock Intel (INTC) for some time now. And while we hoped the return of the Consumer Electronics Show (CES) event would light a fire under Intel, a new report from the Wall Street Journal suggests otherwise. And with Intel down nearly 3.5% in Monday afternoon’s trading, that may be closer to the truth than anyone expected.
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We know that Intel has faced a lot more competition these days, especially with Nvidia (NVDA) making a huge surge forward thanks to its prominence in graphics cards. But the biggest problem is said to come from Advanced Micro Devices (AMD), who has been rapidly gaining into operations that were considered “bread-and-butter” at Intel.
Data center chips are increasingly a problem for Intel, as more and more data centers are turning to GPUs as opposed to CPUs, a difference that started small, but is now much larger. GPUs—graphics processing units—were never much of a business for Intel. But with GPUs becoming a major part of cryptocurrency mining and artificial intelligence (AI) applications, true next-gen technology, Intel is finding its line of central processing units (CPUs) increasingly irrelevant.
Not Dead Yet
But the arrival of CES did lend a little hope to Intel’s future, thanks to a report from The Verge which noted that Intel is absolutely not killing off its graphics card business. There were some concerns that that would happen, but the sales of the recently-released Battlemage lineup likely prompted reconsidering.
Co-CEO Michelle Johnston Holthaus made it clear during Intel’s 2025 keynote: “We are very committed to the discrete graphics market and will continue to make strategic investments in this direction.” Given that only weeks prior former CEO Pat Gelsinger declared that there was “…less need for discrete graphics in the market going forward,” the idea that Intel may have been out of the market was not out of line. Holthaus seems to have put that notion permanently to bed, however.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 21 Holds and five Sells assigned in the past three months, as indicated by the graphic below. After a 58.25% loss in its share price over the past year, the average INTC price target of $24.53 per share implies 23.7% upside potential.
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