Intel Stock Takes A Hit, Analysts Still Bet Big on AI Future

Intel Corporation recently found itself in a challenging position on the stock market, experiencing a five-day losing streak that concluded on Monday, May 18, 2026. Despite this significant downturn for the chip manufacturing giant, several prominent Wall Street analysts surprisingly chose this very moment to increase their price targets for Intel, arguing that the market is still failing to properly value the company's long-term potential, especially within the rapidly expanding AI-driven computing landscape.

The stock's struggles began earlier in May. A sell signal for Intel stock was reportedly issued from a pivot top point on Monday, May 11, 2026. The downward trend quickly intensified, with shares dropping significantly by the end of that week. By Friday, May 15, 2026, Intel's stock price had fallen by 6.18%, marking its fourth consecutive day of decline. It closed that day at $108.77, down from an earlier price of $115.93, after a 6.2% drop on the preceding Friday.

The slide continued into the next trading week. Reports indicated that Intel's stock slipped another 1.2% to $107.44 ahead of the opening bell on Monday, May 18, 2026. By the close of trading on that same day, the stock finished at $108.17, down an additional 0.55%, officially completing its five-day losing streak. Over the four trading sessions leading up to this point, the stock had reportedly plummeted more than 15%, and over the course of that full week, the share price was down a substantial 16.43%.

Amidst this period of market volatility and investor concern, the contrasting opinions from analysts offered a different narrative. Atif Malik, an analyst at Citigroup, notably raised his price target for Intel to $130, a significant jump from his previous target of $95. Alongside this increase, Malik maintained a "Buy" rating on the stock, signaling his continued confidence in the company's future performance.

Malik's optimistic outlook was supported by a detailed model projecting substantial growth in the total addressable market for central processing units (CPUs). His analysis suggested that this market could expand by approximately 35% annually, potentially reaching an estimated $132 billion by the year 2030. This projected growth is largely attributed to the increasing demand for AI agents and the pervasive integration of artificial intelligence across various computing environments. It's worth noting that Malik also adjusted his price target for Intel's rival chipmaker, Advanced Micro Devices (AMD), moving it to $460 from $358, while assigning AMD a "Neutral" rating.