Why Intel Stock Is Sinking Today

Intel (NASDAQ: INTC) stock is losing ground in Friday's trading. The semiconductor company's share price was down 4.6% as of 11:40 a.m. ET amid the backdrop of a 1.6% decline for the S&P 500 index and a 2% fall for the Nasdaq Composite index.

The broader market is falling today due to bearish macroeconomic indicators, and Intel stock is participating in the pullback. The company's share price is also likely being pressured by unfavorable coverage from analysts.

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Intel stock falls on jobs data

Investors got some unwelcome news when the U.S. Bureau of Labor Statistics published its latest jobs data this morning. The report showed that 256,000 jobs were added in December, which came in far ahead of the 155,000 job additions that had been called for by the average economist estimate. The jobs data makes it likely that the Federal Reserve will be more cautious when it comes to cutting interest rates.

While the Fed delivered three interest rate cuts last year, rates have remained relatively high as a means of combatting inflation. Investors have been hoping that easing inflationary pressures would pave the way for the central banking authority to create a more favorable environment for stocks by cutting rates. But December's jobs data suggests that the U.S. economy may still be running hot and that inflation issues could prove stickier than many had hoped.

Analysts see challenges for Intel

Before the market opened this morning, Mizuho published new coverage on Intel. The firm maintained a neutral rating on the stock, but it lowered its one-year price target from $23 per share to $21 per share. As of this writing, Mizuho's new target suggests potential upside of roughly 10.5% -- but that's hardly a roaring bullish endorsement.

Goldman Sachs also commented on Intel in a research note published about AMD today. Goldman analyst Toshiya Hari actually downgraded his rating on AMD from buy to neutral and lowered his one-year price target from $175 per share to $129 per share, but he said that he expects the company will be able to continue winning market share from Intel in the PC and server markets. Notably, the analyst highlighted the rise of Arm as a competitive risk that could pressure AMD -- and it could also put strains on Intel's comeback initiatives.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Goldman Sachs Group, and Intel. The Motley Fool recommends the following options: short February 2025 $27 calls on Intel. The Motley Fool has a disclosure policy.