Intel Corporation Share Price Drops 59% Over Five Years, Loses $12 Billion in Seven Days

Intel Corp's stock price has dropped 59% over five years, resulting in a $12 billion loss in value this past week. The company's earnings per share dropped significantly, falling to a loss. However, insiders have made significant purchases in the last year, and the total shareholder return (TSR) was a 55% drop over the last 5 years, which was not as bad as the share price return.

Intel Corp's (NASDAQ:INTC) stock price has experienced a significant decline over the past five years, with a 59% drop resulting in a $12 billion loss in value over the last week alone. This downturn has been exacerbated by the company's earnings per share (EPS) dropping to a loss, as reported in its Q2 2025 earnings report [1]. Despite surpassing revenue expectations, Intel's stock faltered due to the loss of profitability and restructuring costs.

Intel's restructuring costs, totaling $1.9 billion, have been a key factor in the company's recent financial performance. These costs, which include workforce reduction and non-recurring charges, have significantly impacted the company's earnings. For instance, without these charges, Intel's non-GAAP EPS would have been $0.10, beating the estimate of $0.01 [1].

The company's new CEO, Lip-Bu Tan, has been focused on reducing managerial overhead and accelerating the rollout of Intel 18A (1.8nm) chips. Intel has announced plans to reduce its workforce by approximately 15% [1]. This restructuring is aimed at improving the company's core business operations and reducing costs.

Intel's stock price has been volatile, with shares currently trading at $20.71, slightly under the 52-week average of $21.78 and significantly below the yearly peak of $27.39 in mid-February [1]. Despite the recent decline, insiders have been making significant purchases in the last year, which could indicate confidence in the company's long-term prospects.

The total shareholder return (TSR) over the last five years was a 55% drop, which was not as severe as the share price return [2]. This discrepancy suggests that while the stock price has fallen significantly, the company's underlying value has remained relatively stable.

Intel's road ahead is challenging, with the semiconductor industry facing intense competition and high R&D costs. The company's gross margin has been shrinking since early 2020, and its COGS dropped to 27.5% in Q2 2025 [1]. However, Intel expects gross margin to improve to 34.1% in Q3, as 18A wafer production begins on schedule in Arizona [1].

In the GPU market, Intel faces significant competition from Nvidia and AMD. According to JPR data, Intel's 2nd-gen Battlemage GPUs make effectively zero share against Nvidia's dominance of 92% and AMD's 8% in Q1 2025 [1]. Intel is working on its XeSS super-sampling implementation, but it will take time to gain market share in the GPU market.

The federal government views Intel as a strategic asset of national security importance, and the company remains a key player in the ongoing AI race against China. Despite the recent stock price decline, analysts recommend holding the stock, with an average price target of $21.97 per share and a ceiling price target of $28.30 [1].

References:
[1] https://www.investing.com/analysis/intel-q2-earnings-is-there-a-silver-lining-200664369
[2] https://simplywall.st/stocks/us/semiconductors/nasdaq-intc/intel/news/insider-sellers-might-regret-selling-intel-shares-at-a-lower