We recently published a list of 10 Most Oversold Semiconductor Stocks in 2024. In this article, we are going to take a look at where Intel Corporation (NASDAQ:INTC) stands against other most oversold semiconductor stocks in 2024.
The semiconductor industry is a crucial pillar of global technological development, providing essential components for various industries, from consumer electronics to industrial automation. Despite its long-term growth potential and innovation, several semiconductor companies underperformed significantly in 2024. These companies were impacted by internal and external factors such as geopolitical tensions and changing regulatory landscapes. For 2024, even the broader Philadelphia Semiconductor Index (SOX), which tracks the performance of the largest U.S.-traded semiconductor companies, returned 19.2%, lagging behind the S&P 500 Index’s 23% return.
In a mid-2024 CNBC interview, Stacey Rasgon, Managing Director at Bernstein Research, highlighted that U.S. semiconductor companies are at a disadvantage due to these restrictions, potentially limiting their growth and competitiveness in the global market. He also attributed uncertainties in Taiwanese businesses to comments from Mr. Trump, the then-presidential candidate, regarding Taiwan.
Certain sectors within the semiconductor industry also faced weaker-than-expected demand in 2024, particularly in consumer electronics and traditional automotive sectors. Despite strong growth prospects in AI, data centers, and automotive technologies, companies more exposed to legacy industries experienced slower demand, leading to weaker earnings. Deloitte’s 2025 global semiconductor industry outlook described this as a “tale of two markets”: companies in the generative AI chip market outperformed, while those without exposure (such as automotive, computer, smartphone, and communications semiconductor companies) underperformed.
While the long-term outlook for the semiconductor sector remains positive, short-term volatility and external challenges are creating headwinds for many companies. Companies most exposed to geopolitical tensions, regulatory shifts, and supply chain issues are likely to experience continued underperformance.
Our Methodology
To determine the 10 most oversold semiconductor stocks in 2024, we began by shortlisting all U.S.-listed semiconductor companies with a current market price of over $10 to avoid penny stocks. From these stocks we filtered the stocks which posted negative returns in 2024. We then ranked the bottom 10 companies in descending order based on their 2024 performance. Additionally, we included data on hedge fund holdings in these companies as of Q4 2024 to provide further insight into investor interest.
Note: All pricing data is as of market close on February 19.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A technician soldering components for a semiconductor board.
Intel Corporation (NASDAQ:INTC)
Share price return in 2024: -58%
Number of Hedge Fund Holders: 83
Intel Corporation (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.
Overall, INTC ranks 1st on our list of most oversold semiconductor stocks in 2024. 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.
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Disclosure: None. This article is originally published at Insider Monkey.
