Intel Stock (NASDAQ:INTC) Plummets as Intel Considers 6G

Under normal circumstances, chip stock Intel INTC -4.51% ▼ should be doing well with the reveal of new plans to start setting up for 6G connectivity. These were apparently not normal circumstances, as Intel’s plans to get into the future of mobile connectivity were met with investors frantically abandoning ship. Intel shares plunged nearly 6% in Tuesday afternoon’s trading.

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Intel was out at one of the biggest events in the mobile arena around, the Mobile World Congress event, traditionally hosted in Barcelona. And Intel, as it turns out, has a lot of plans for the future of mobile connectivity, working with several partners to start laying the groundwork for 6G connectivity. This may come as a surprise in many places, particularly those that do not yet have access to a 5G signal. But 5G access is nearly universal in many places, so 6G was, likely, inevitable.

And 5G will be a big part of the development path to 6G, reports suggest, and Intel will be showing off that much at its MWC booth. Intel has 14 separate tech demos ready to show off, demonstrating Intel’s connection to commercial 5G. One demonstration shows off Intel’s power efficiency and rack-level performance, while another shows off Intel Xeon 6’s ability to power “…scalable agentic AI inferencing in the telco cloud.”

New Stab From AMD

Naturally, Intel will have competition at every step of the way, and AMD AMD -3.74% ▼ recently showed off some of its own advances. In fact, AMD just launched the first desktop processors that were certified for use with Microsoft Copilot+.

This is bad news for Intel, of course, as it represents one more front that AMD will compete with Intel on. Moreover, since these are the first desktop processors certified, AMD will enjoy a first-mover advantage for a period of time. About the only point in Intel’s favor on this one is that Copilot is experiencing some consumer backlash right now, which suggests the overall market for Copilot+ processors may be limited.

Is Intel a Buy, Hold or Sell?

Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on eight Buys, 21 Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 113.31% rally in its share price over the past year, the average INTC price target of $48.21 per share implies 10.88% upside potential.

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