Intel shares fall amid some concerns they have risen ‘too far, too fast’

Is Intel stock due for withdrawal?

Bank of America analysts think so, telling clients this week that they believe the struggling chipmaker’s shares have risen “too far, too fast” after their recent rally on a series of high-profile trades.

The stock fell more than 4% on Tuesday, making it one of the biggest decliners in the S&P 500 and Nasdaq, on a down day for the broader technology sector amid concerns about U.S.-China trade tensions. However, the stock is up nearly 80% for 2025, with most of the gains coming in just the past few months.

Sentiment toward Intel ( INTC ) stock got a boost recently after the Trump administration took a stake in August, and the chipmaker announced a partnership with rival Nvidia ( NVDA ) last month. This has given rise to speculation deals with other companies could happen soon, with Apple (AAPL) and Advanced Micro Devices (AMD) floated as possible names.

However, Bank of America analysts said they believe Intel stock’s recent gains have become disconnected from its underlying potential, with the outlook “remaining challenged with no clear AI portfolio/strategy.”

Analysts downgraded the stock to “underperform” from “neutral,” with a price target of $34, suggesting a roughly 5% downside from Tuesday’s close.

That’s slightly higher than the average of analysts surveyed by Visible Alpha, who largely maintained neutral ratings on the stock while waiting to see more signs of customer commitments to Intel’s manufacturing business.