Intel (INTC – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Amanda Tan from DBS maintained a Hold rating on the stock and has a $22.00 price target.
Amanda Tan has given her Hold rating due to a combination of factors affecting Intel’s current and future performance. While Intel’s recent earnings exceeded expectations, the outlook for the first quarter of 2025 remains uncertain due to seasonal weaknesses, inventory adjustments, tariffs, and competitive pressures. The company is still working to regain its technological edge and improve profitability, which is crucial for its turnaround story. Intel’s efforts to reclaim its leadership in technology and competitiveness are ongoing, with significant investments in its “IDM 2.0” strategy and a roadmap that aims to deliver new process nodes over the next few years.
Despite these efforts, Intel faces challenges in the AI sector, where it lags behind competitors like Nvidia and AMD. The company’s Gaudi AI accelerators have not gained significant traction, and its internal use of Falcon Shores GPUs indicates further delays in catching up in the AI market. Additionally, Intel’s margins are under pressure due to high operating costs and losses from its Foundry division, which are expected to persist in the near term. While Intel is optimistic about its long-term prospects, the current challenges and uncertainties justify a Hold rating, with a target price of USD 22.0.
In another report released yesterday, Mizuho Securities also maintained a Hold rating on the stock with a $23.00 price target.