Why Intel is falling and what to expect in 2027
Intel is one of my favorite companies. I bought its shares at a good time, and later sold some of them for several times the price. So, the current decline is of particular interest to me.
Until recently, quotes exceeded $130, and the maximum over the last 52 weeks was $142.35.
At the close of trading on November 5, the price fell to $52.25, about 63% below the high.
What is happening with the company and can we expect a recovery in share price and when might this happen?
Reasons for Intel's decline in late 2026
The main reason is the weak outlook. Intel expects fourth-quarter revenue of $15–16 billion, compared to the approximately $17.07 billion analysts had expected. Investors had hoped for a quick improvement in results, but now the recovery timeline is being pushed back.
Demand and production issues. Expensive memory is driving up the cost of computers and deterring purchases. At the same time, component shortages are limiting server processor supplies. An additional blow was the October accident at a plant in Israel, which halted production for approximately two weeks. The consequences could impact results until the first half of 2027.
High factory costs. Modern chip production requires massive investments that take years to pay off. Intel's Foundry manufacturing division posted an operating loss of $1.85 billion in the third quarter. This is an improvement from $2.32 billion last year, but the company remains under significant pressure.
Chances of stock price recovery to highs?
Intel's business continues to grow. Third-quarter revenue increased by 21% to $16.5 billion. Data centers and artificial intelligence (AI) were particularly strong, growing 78% to $7.3 billion. This is a significant source of future profits.
There are also promising partnerships. In October, Intel and Oracle announced plans to expand the use of Xeon processors in Oracle's cloud infrastructure. This collaboration could bolster server chip sales, although the companies did not disclose the guaranteed amount of future orders.
The government has a stake in Intel. In August 2025, the company signed an agreement with the Trump administration for an $8.9 billion US government investment in its shares. America needs its own advanced microchips, including for defense. Therefore, Intel's support is of strategic importance.
A Democratic victory in both houses of Congress could pave the way for new industrial programs. However, Trump remains president, and new funding for Intel has yet to be approved. Political change cannot be seen as a guarantee of funding.
In 2027, much will depend on the recovery of production, growth in server sales, and a reduction in factory losses. If these processes continue, stocks will have grounds for recovery. However, returning to previous highs could take more than a year.
In my opinion, after such a decline, Intel deserves consideration for a gradual acquisition over several years. The company retains promising developments, major partners, and government support.
You can buy Intel shares from the following brokers
Calling the current price a guaranteed minimum is impossible. However, for an investor prepared for fluctuations and a long wait, this could be an attractive opportunity. The main selling point is Intel's ability to grow future profits. This should confirm that the recovery has truly begun.
