Retail Investors Bet Big On Intel’s Turnaround, Call the Stock ‘Undervalued’

Retail investors are rallying behind Intel Corp. (INTC), with a recent Stocktwits poll revealing that 68% of respondents hold a bullish outlook on the company’s turnaround potential. 

Intel's stock rose 2.7% during Wednesday's session and edged up an additional 0.2% in after-hours trading.

Most retail investors on Stocktwits see the stock as undervalued and poised for recovery, reflecting optimism about the company’s future strategic moves and ability to regain market share.

Stocktwits Poll Asking Retail Investors' Outlook On Intel Corp.'s Turnaround Potential. | Source: Stocktwits

While optimism dominates the poll, 14% of respondents remain bearish, citing concerns about Intel’s management.

The lack of confidence stems from Intel’s challenges in capitalizing on the rapid growth of the AI sector. 

Unlike NVIDIA, which dominates AI computations with advanced GPU technologies, Intel missed early opportunities, including investments in key AI innovators such as OpenAI, where Microsoft (MSFT) took advantage. 

According to analysts, the company’s failure to position itself as a leader in AI technologies has left it playing catch-up.

Another 14% of investors took a neutral stance, citing uncertainty over potential leadership changes after CEO Pat Gelsinger’s exit and no successor being decided. 

While leadership transitions can introduce short-term volatility, historical examples suggest they can also revitalize struggling companies. 

Most recently, Starbucks’ appointment of former Chipotle CEO Brian Niccol, for instance, brought a strategic shift that resulted in a 24% stock surge in 2024.

Only 5% of respondents highlighted the potential boost from the CHIPS Act as a significant factor in Intel’s recovery. 

Intel Corp. Sentiment and Message Volume on Jan.15 as of 9:20 p.m. ET | Source: Stocktwits

On Stocktwits, retail sentiment around the stock remained in the ‘neutral’ zone in after-hours trading on Wednesday even as message volumes were at ‘high’ levels.

One user pointed to Intel’s size and market position as reasons to buy the stock while it’s trading lower. 

Other users said they’re anticipating a turnaround for the stock once the company reports its fourth-quarter earnings on Jan. 30. 

Intel’s stock is down nearly 2.5% year-to-date.

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