Intel Stock Plummets 1.70% on Disappointing Turnaround Plan, Trading Volume Ranks 79th

On May 5, 2025, Intel (INTC) experienced a 1.70% decline in its stock price, with a trading volume of $825 million, ranking 79th in the day's market activity.

Intel's stock price dropped significantly in April 2025, despite a strong earnings report. The decline was primarily due to investor disappointment with CEO Lip-Bu Tan's turnaround plan, which focused on the Foundry business. Investors had hoped for more radical changes, such as disposing of the Foundry segment to refocus on pure processor designs. The company's commitment to its manufacturing-based business plan did not impress most investors, leading to a 11.5% drop in stock price over the month.

During the Vision 2025 conference, CEO Lip-Bu Tan unveiled a detailed turnaround plan, emphasizing a return to Intel's innovative roots and a commitment to the Foundry business. However, the market reaction was underwhelming, as investors had anticipated more significant strategic shifts. The rumor mill suggested a potential spin-off of the Foundry segment into a joint development with Taiwan Semiconductor Manufacturing, but this did not materialize. Intel's first-quarter report beat analyst expectations, but the lack of game-changing Foundry developments left investors unimpressed.

Intel's stock price continued to face downward pressure as market makers disagreed with the company's strategic direction. The stock is now down 33% over the last 52 weeks, compared to a 13% gain for the S&P 500 market index. Despite being unprofitable at the moment, Intel trades at a reasonable forward price-to-earnings ratio of 25.8 and a price-to-sales ratio of 1.7, suggesting that the stock may be undervalued.