Intel Stock Slides Amid Disappointing Guidance and Weak Jobs Report

Intel shares are trading lower due to disappointing corporate guidance and a weak US jobs report, which stoked fears of a broader economic slowdown. The company's bleak forecast was accompanied by Q2 earnings and revenue figures that missed analyst estimates. A weak labor market report further heightened concerns about the economy's health. Intel's sales are sensitive to consumer and business confidence, which could worsen due to recession fears and reduced spending on IT infrastructure and servers. The stock has a Value score of 75.42, suggesting it may be undervalued based on fundamental valuation metrics.

Intel Corporation (NASDAQ: INTC) shares have been trading lower following the company's disappointing corporate guidance and a weak US jobs report, which has heightened concerns about a broader economic slowdown. The company's second-quarter earnings and revenue figures fell short of analyst estimates, further exacerbating investor fears. The stock's Value score of 75.42 suggests it may be undervalued based on fundamental valuation metrics.

Intel's guidance for the third quarter of 2025 pointed to a challenging environment, with the company expecting revenues to decline due to a slowdown in the PC market and reduced spending on IT infrastructure and servers. The weak labor market report has further dampened consumer and business confidence, which could negatively impact Intel's sales. The company's core CPU market has been facing increased competition from AMD and Nvidia, while its foundry ambitions have not materialized as expected.

Intel's adjusted net margins have been declining, falling from over 28% in 2021 to just about 8.5% in 2023. The company's move to outsource production of some of its recent processors to TSMC has not only boosted product performance but also reduced the utilization of its internal manufacturing facilities. This has led to a dilemma for Intel, as it must balance product competitiveness with the financial health of its own costly foundries.

The stock currently trades at about $20 per share, with a price-to-earnings multiple of about 160x estimated 2025 earnings. Investors are betting that things will improve for Intel, but if the company fails to deliver on its promises, investor sentiment could deteriorate further, leading to a significant correction in the stock price.

Investors should exercise caution with Intel stock for the time being. However, they may want to consider exploring the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark to produce strong returns for investors. The quarterly rebalanced mix of large-, mid- and small-cap RV Portfolio stocks has provided a responsive way to make the most of upbeat market conditions while limiting losses when markets head south.

References:
[1] https://www.forbes.com/sites/greatspeculations/2025/07/29/how-intel-stock-falls-to-10/
[2] https://www.nasdaq.com/articles/should-investors-buy-sell-or-hold-smci-stock-q4-earnings