Intel’s Stock Drops Over 3% After Warnings of Overvaluation

Intel’s stock experienced a decline during Wednesday’s trading session, after HSBC analysts warned that the strong increase the stock has seen since the beginning of the year appears excessive, despite support from investments by SoftBank, the U.S. government, and Nvidia.
The stock fell by 1% to $36.76 at 5:04 PM Mecca time, after previously dropping by 3.4%.
It has reduced its gains since the start of the year to 83%, making it one of the best-performing stocks in the S&P 500 index, benefiting from support from investments by the U.S. government, SoftBank, and Nvidia.
However, HSBC analysts cautioned in a note released on Wednesday that this rise may not be sustainable, due to the operational challenges facing the American chipmaker, asserting that Intel’s success in improving its factory efficiency is crucial for any long-term recovery.
The bank also lowered its recommendation for the stock, setting a target price of $24, indicating a potential decline of 35% from the previous closing level of $37.17.