Intel Stock Drops as Big Investors Change Their Tune—What’s Really Happening?

Intel Corporation (INTC) is seeing a mixed response from institutional investors and analysts as the semiconductor giant faces significant shifts in its stock performance. On March 20, 2025, Intel’s stock was down by 6.96%, trading at $24.12. This drop comes as institutional sentiment remains divided, with some investors trimming their stakes, while others remain committed to their positions.

Institutional Moves: A Divided Sentiment

Recent filings show that institutional investors are taking different approaches to Intel’s stock. Pacific Heights Asset Management LLC, for example, slashed its stake by a whopping 71.4%, reducing its holdings to just 60,000 shares valued at approximately $1.2 million. On the other hand, Geode Capital Management LLC increased its position by 4.6%, owning over 92.5 million shares worth $2.16 billion. Another notable move was from Relyea Zuckerberg Hanson LLC, which grew its stake by 211.6%, adding nearly 19,625 shares.

These contrasting actions indicate a split sentiment among institutional investors, with some showing caution, while others are doubling down on their positions. The mixed response underscores the uncertainty that surrounds Intel’s future performance in an increasingly competitive market.

Analysts Trim Targets Amid Challenges

Intel’s stock performance is also being affected by cautious analyst opinions. Wells Fargo & Company recently lowered its target for Intel from $28 to $25, maintaining an “equal weight” rating. Stifel Nicolaus followed suit with a target cut from $25 to $21, while Bank of America reaffirmed its “underperform” rating, setting a price target of $21. These moves reflect a more cautious outlook for Intel, as analysts highlight the company’s ongoing challenges in a volatile tech market.

Currently, Intel holds a “hold” rating with an average price target of $26.88, suggesting limited upside potential in the short term. Despite some positive developments, many analysts remain sceptical about the company’s ability to deliver significant returns in the immediate future.

New CEO Brings Hope Amid Struggles

Intel’s stock did see a brief boost in early March when the company appointed Lip-Bu Tan as its new CEO. Shares surged by 12% following the announcement, closing at $23.70. Tan, who brings a wealth of experience to the role, is seen as a potentially transformative figure for Intel. However, while analysts have expressed optimism about Tan’s leadership, they caution that real improvements may take time.

The company’s ability to execute its strategic vision under Tan’s leadership will be critical to Intel’s recovery, and investors are eager to see how the new CEO handles the company’s challenges in the coming months.

Conclusion: What’s Next for Intel?

Intel’s stock is caught in a tug-of-war between institutional investors trimming their stakes and others expressing confidence in the company’s future. With analysts lowering their price targets and the market remaining uncertain, Intel faces a challenging road ahead. However, the appointment of a new CEO and ongoing efforts to adapt to the changing semiconductor landscape could offer a glimmer of hope.

As Intel navigates through these mixed signals, investors will need to closely monitor how the company executes its turnaround strategy under Tan’s leadership.