10 Most Oversold Semiconductor Stocks in 2024

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1. Intel Corp. (NASDAQ:INTC)

Share price return in 2024: -58%

Number of Hedge Fund Holders: 83

Intel Corp. (NASDAQ:INTC) is a global leader in the design and manufacturing of microprocessors and semiconductor components. The company’s products power a wide range of computing devices, from personal computers to data centers and Internet of Things (IoT) applications. Intel is renowned for its innovation in CPU architecture and process technology.

Over the last decade, Intel Corp. (NASDAQ:INTC) has been consistently losing market share to competitors, particularly Advanced Micro Devices Inc.(NASDAQ:AMD). Although the management implemented a turnaround plan, the execution was subpar, leading to continued market share loss. In 2024, Intel Corp. (NASDAQ:INTC) shares lost nearly 60% of their value, placing the management in a difficult position. However, 2025 has been a bright spot for the company, with the stock price rising 28%. Unfortunately, this rise could be attributed more to strategic options rather than resolving execution issues.

One such development occurred on February 15, when Bloomberg reported that Taiwan Semiconductor Manufacturing Company (NYSE:TSM) is considering acquiring Intel Corp. (NASDAQ:INTC)’s U.S. manufacturing facilities. This proposal follows suggestions from the Trump administration to Taiwan Semiconductor Manufacturing Company (NYSE:TSM) to bolster American manufacturing capabilities. However, another report from Reuters indicates that some officials have expressed reservations about a foreign entity operating Intel Corp. (NASDAQ:INTC)’s U.S. factory. These discussions are in preliminary stages, and no formal agreements have been reached. Additionally, speculation about Intel’s potential breakup into parts and spin-offs has been circulating, contributing to a 24% rally in Intel’s share price within one week.

While we acknowledge the potential of INTC to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than INTC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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