Intel (NASDAQ:INTC) is currently trying to shake off years of underperformance and hopes the appointment of a new CEO can speed up the process.
With the new man at the helm, Lip-Bu Tan, having delivered the opening keynote at Intel Vision 2025 on Monday, Truist’s top analyst, William Stein, is buying into the new look – and then some.
“While one speech doesn’t form the basis of an upgrade, we thought this was the most constructive message we’ve heard from Intel for as long as we’ve covered the company,” said Stein, who’s ranked in the 14th spot among thousands of Wall Street stock experts.
So, what was it about the speech that sparked Stein’s enthusiasm? Well, one word more than anything: culture. Tan mentioned the word at least 20 times during his presentation. He emphasized the importance of fostering both a day-one startup culture and a culture of innovation. Having previously talked about what he perceived as a “problematic culture” following the prior CEO’s departure, the analyst thinks that “starting with culture, rather than a list of products or manufacturing nodes is a breath of fresh air.”
Tan also dedicated a significant portion of his presentation to discussing customers. He highlighted his commitment to gathering their feedback – especially given that Intel’s products have received underwhelming grades of D’s and F’s – correcting past mistakes, and rebuilding trust by under-promising and over-delivering. “This fresh air is starting to feel nice,” the analyst further exclaimed.
Additionally, Tan said his internal focus will be on re-establishing Intel as an engineering-driven company. His top priority is attracting and retaining top engineering talent to drive growth and reignite a “culture of innovation and empowerment.” That also elicits a positive reaction from Stein, who feels like “the air is starting to blow my hair around.”
Those are the main bits that got Stein excited. Additional plans mentioned include the spinning off of non-core businesses, strengthening the balance sheet (potentially through another Semiconductor Co-Investment Program), and developing more purpose-built silicon, likely customized x86 solutions. The new CEO also aims to refine Intel’s AI strategy, which Stein thinks has lacked direction. Additionally, Tan is actively engaging with the Trump administration and exploring opportunities in physical AI and quantum computing.
Although Stein came away impressed, he’s not ready to jump in just yet – maintaining a Hold (i.e., Neutral) rating on Intel shares and setting a $21 price target. That points to a potential 5% downside from current levels. (To watch Stein’s track record, click here)
Most of Stein’s colleagues are also on the fence here; based on a mix of 27 Holds, 4 Sells and 1 Buy, the analyst consensus rates INTC stock a Hold. At $23, the average target suggests the shares are poised to stay range-bound for the foreseeable future (See INTC stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.