Following sell-offs on the previous day, shares of Intel Corporation saw a resurgence in trading on Tuesday. The semiconductor company’s stock price rose by 2.8%, outperforming the S&P 500’s 2.5% gain and the Nasdaq Composite’s 2.7% increase. Initially, the stock had experienced a rise of as much as 4.8% before some gains were relinquished.
Bloomberg reported that Scott Bessent, the U.S. Treasury Secretary, addressed an investor conference, indicating that significant easing in the U.S.-China trade war may occur shortly. This news contributed to notable gains for Intel, despite two analysts reducing their price targets for the stock earlier that day.
Scott Bessent reportedly mentioned that the trade war between the U.S. and China was unsustainable and hinted at the possibility of a deal, even though formal negotiations had not begun. Subsequently, the White House confirmed that the Trump administration was preparing for a trade agreement with China. This seemingly positive development helped Intel recover from the losses faced during the previous day’s sell-offs. However, with conditions changing rapidly, investors should brace for potential volatility.
Barclays, in its latest analysis, reduced its one-year price target for Intel from $23 to $19 per share while maintaining an equal-weight rating. Analyst Tom O’Malley cited tariff challenges and broader valuation pressures related to Chinese dynamics as reasons for this adjustment.
Similarly, Bernstein lowered its price target for Intel from $25 to $21 per share, maintaining a market-perform rating. The firm revised its performance expectations for the year, predicting earnings of $0.37 per share on $52.4 billion in sales, down from a previous forecast of $0.43 per share on sales of $53.1 billion.
Bernstein’s analysis noted that Intel is facing an uneven demand outlook in its chip-design segment this year. The strategic decisions Intel makes regarding its loss-generating foundry business could significantly impact the stock’s performance in the coming months.
