Analyst Ruben Roy from Stifel Nicolaus maintained a Hold rating on Intel (INTC – Research Report) and keeping the price target at $21.00.
Ruben Roy has given his Hold rating due to a combination of factors concerning Intel’s current position and future prospects. The recent appointment of Lip-Bu Tan as CEO is seen as a positive move for Intel in the long run, given his successful track record at Cadence Design Systems. However, Intel is currently undergoing a significant transition period as it seeks to realign itself with the rapidly evolving AI-centric market opportunities.
Despite the potential for Mr. Tan’s leadership to eventually drive positive changes, the transition is expected to be lengthy. The market is likely to wait for more clarity on Mr. Tan’s strategic vision and plans for Intel before any significant upward momentum in the stock price can be anticipated. In the meantime, companies that are immediate beneficiaries of the AI infrastructure boom, such as NVIDIA, are expected to outperform Intel, justifying the Hold rating.
According to TipRanks, Roy is a 5-star analyst with an average return of 14.5% and a 58.65% success rate. Roy covers the Technology sector, focusing on stocks such as Celestica, Nvidia, and Ciena.
In another report released today, DBS also maintained a Hold rating on the stock with a $22.00 price target.
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