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Intel Stock Rally Loses Momentum as Investors Demand More Proof of Recovery

Intel’s recent stock rally experienced a decline on Friday as investors shifted their focus from an optimistic forecast to the numerous challenges still facing the struggling chip manufacturer. On Thursday, Intel projected fourth-quarter sales of approximately $13.3 billion, surpassing expectations. However, Wall Street’s average estimate stood at $13.4 billion, with some analysts factoring in revenue from a recently spun-off unit—revenue not included in Intel’s forecast.

In a positive development, Intel reported a return to profitability in the third quarter, which concluded on September 27, marking its first quarterly net income since late 2023. Initially, investors responded favorably to these results, driving the stock price up by as much as 7.8% on Friday. However, enthusiasm quickly waned as shareholders sought more concrete evidence of the company’s recovery strategy.

Bloomberg News Semiconductor Reporter Ian King shared insights on the situation during an appearance on Bloomberg Businessweek Daily, discussing the implications of Intel’s performance with hosts Carol Massar and Tim Stenovec.

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Source: Original