Intel (INTC, $49.39) urged to explore strategic options by hedge fund Third Point
Activist hedge fund Third Point LLC is urging Intel Corp. to explore strategic alternatives, according to a letter it sent to the company’s chairman on Tuesday.
The alternatives include decisions such as whether Intel should keep chip design and production arms under one entity. It could also lead to the unwinding of some of its acquisitions, such as the $16.7 billion purchase of Altera in 2015 (as reported by Reuters).
Third Point has nearly $1 billion stake in Intel, according to people familiar with the matter(as reported by Reuters).
Reuters reported that Third Point Chief Executive Daniel Loeb wrote to Intel Chairman Omar Ishrak pushing for immediate action to bolster the company’s position as a major provider of processor chips for PCs and data centers. According to Loeb’s letter, Intel has lost its pole position in microprocessor manufacturing to Taiwan Semiconductor Manufacturing Co and South Korea’s Samsung Electronics Co Ltd.
The letter also mentioned addressing Intel’s “human capital management issue,” as an urgent action, as many of its highly skilled chip designers have left “demoralized by the status quo”.
Furthermore, the letter suggested that Intel is losing its market share in PC and data center segments to Advanced Micro Devices Inc.
In artificial intelligence applications, NVIDIA Corp is dominating computational models, while Intel has almost no presence in this relatively new market, according to the letter.
Loeb is concerned that without immediate action from Intel, the U.S. might have to depend more heavily on “a geopolitically unstable East Asia to power everything from PCs to data centers to critical infrastructure and more”, as mentioned in the letter. Loed wrote that Intel customers, such as Apple Inc, Microsoft Corp and Amazon.com Inc, are developing their own in-house silicon solutions and sending those designs to be manufactured in East Asia; Loeb advised that Intel must have new solutions for retaining customers versus having them send their manufacturing away.
Intel responded, “Intel welcomes input from all investors regarding enhanced shareholder value. In that spirit, we look forward to engaging with Third Point LLC on their ideas towards that goal.”
INTC in downward trend: price expected to drop as it breaks its higher Bollinger Band on September 16, 2025
INTC broke above its upper Bollinger Band on September 16, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 39 similar instances where the stock broke above the upper band. In of the 39 cases the stock fell afterwards. This puts the odds of success at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for INTC moved out of overbought territory on August 20, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 25 similar instances where the indicator moved out of overbought territory. In of the 25 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The Moving Average Convergence Divergence Histogram (MACD) for INTC turned negative on September 08, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where INTC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for INTC entered a downward trend on August 12, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 15, 2025. You may want to consider a long position or call options on INTC as a result. In of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
INTC moved above its 50-day moving average on August 12, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for INTC crossed bullishly above the 50-day moving average on August 19, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
The 50-day moving average for INTC moved above the 200-day moving average on August 14, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where INTC advanced for three days, in of 309 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. INTC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.188) is normal, around the industry mean (11.597). P/E Ratio (97.750) is within average values for comparable stocks, (73.942). Projected Growth (PEG Ratio) (1.359) is also within normal values, averaging (1.793). Dividend Yield (0.005) settles around the average of (0.022) among similar stocks. P/S Ratio (2.032) is also within normal values, averaging (27.874).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. INTC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock worse than average.
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a manufacturer of computer components and related products
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