Analysts are revising their ratings on microchip firm Intel (INTC) after months of disasters, layoffs, and the exit of CEO Pat Gelsinger. And the mood among analysts is generally not great.
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One of the biggest shifts comes from Stephen Guilfoyle, a four-star rated analyst, who said that he was originally long on Intel but has changed his mind following the abrupt departure of the company’s CEO. Guilfoyle is wondering if Gelsinger really retired as was stated by the company, or if he was thrown out?
Other analysts have also raised questions. Bank of America Securities (BAC) noted that Intel might now separate its Products and Foundry operations. Oppenheimer (OPY) analysts see structural headwinds at Intel, like its foundry operations continuing to be a drag on the overall business.
Intel’s Future with AI
Intel will likely not be able to do much without considering the future of artificial intelligence (AI). A recent interview with Ria Cheruvu, an A.I. ethicist at Intel, notes that things like “…privacy, consent, bias and algorithmic discrimination,” will be important for the company to explore moving forward.
Cheruvu even muses in the interview if things would be better if AI were more “streamlined, or in the hands of creators and artists.”
Is Intel Stock a Buy?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 22 Holds and seven Sells assigned in the past three months, as indicated by the graphic below. After a 46.62% loss in its share price over the past year, the average INTC price target of $24.43 per share implies 10.77% upside potential.
