After Down 25% In A Month, What To Expect From Intel’s Stock After The Coronavirus Threat Passes?

by Trefis Team
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On Monday, March 16, the stock markets fell 12%, the biggest sell off since 1987, and largest point drop for the Dow Jones of all time. A rapidly increasing number of Coronavirus cases worldwide has caused mounting concerns of a global economic slowdown.

Intel (NASDAQ: INTC) stock fell 18% on Monday and is down by a total of almost 30% since early February, considering the impact that the outbreak and a broader economic slowdown could have on the chipset and processor manufacturing industry.
However, going by the trends seen during the 2008 economic slowdown, it’s likely that Intel’s stock could bounce back strongly and potentially outperform the market as the crisis winds down.

In our interactive dashboard analysis, 2007-08 vs. 2020 Crisis Comparison: How Did Intel Stock Fare Compared with S&P 500?, we take a look at how the company’s stock reacted to the economic crisis of 2008 and compare its performance with the S&P 500.

Intel Stock vs. S&P 500 Over 2020 Coronavirus/Oil Price War Crisis

  • Between March 9th and March 16th, Intel’s stock has declined by around 20% and is down by almost 30% since February 1, after the WHO declared a global health emergency.
  • Over the same period, the S&P 500 has declined by almost 20% and is down by over 28% since February 1, after the global health emergency was declared by the WHO.
  • We also compare the current coronavirus crash to 4 other market crashes here.

To see how AMD, a close competitor, performed over the same period, view our interactive dashboard: 2007-08 vs. 2020 Crisis Comparison: How Did AMD Stock Fare Compared with S&P 500?

Intel Stock vs S&P 500 Over 2007-08 Financial Crisis

  • Intel’s stock declined from levels of around $18 in October 2007 (the pre-crisis peak) to levels of around $9 in March 2009 (as the markets bottomed out) and recovered to levels of almost $15 in early 2010.
  • Throughout the crisis, Intel’s stock declined by as much as 50% from its approximate pre-crisis peak. This marked a decline in line with that of the S&P which fell by around 51%.
  • However, the stock recovered relatively faster, rising by almost 64% between March 2009 and January 2010. In comparison, the S&P rose by about 48% over the same period.

For more detailed charts and a timeline of the 2008 and 2020 crisis for different stocks, view our interactive dashboard analyses on coronavirus.

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