Intel (INTC) Stock Falls 6% After Guidance Miss, Buy the Dip or Stay Away?

TLDR

• INTC dropped 6.02% on July 28, underperforming the broader Technology Equipment sector which fell 3.43%
• Disappointing quarterly guidance and foundry execution concerns drove the sell-off
• DCF analysis puts Intel’s intrinsic value at around $89 per share, suggesting slight overvaluation
• Intel’s P/S ratio of 8.1x sits well below its peer group average of 26.7x, pointing to undervaluation on a sales basis
• Intel has returned 343.3% over the past year despite recent weakness; analyst average price target sits at $111.88

Intel dropped 6.02% on July 28, one of the worse performers in the Technology Equipment sector on the day. The broader sector fell 3.43%, but Intel’s decline stood out.

The sell-off came after weak quarterly guidance and fresh doubts about the company’s foundry strategy. Investors are questioning how long the turnaround will take.

Intel’s latest twelve-month free cash flow is a loss of $4.8 billion. Heavy capital spending on global fabrication expansion is putting pressure on the balance sheet and raising questions about when margins recover.

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