Nvidia (NASDAQ:NVDA) continues to produce record-breaking growth as it shoots upwards on the strength of the AI revolution. This has sparked high expectations for key players in the chipmaking sector on Wall Street.
However, not all companies are riding this wave. Intel (NASDAQ:INTC) disappointed investors with its Q1 2024 performance, prompting many to seek better opportunities elsewhere. Overall, Intel shares have lost 39% since the beginning of the year.
Of particular concern is Intel’s apparent absence from the turbocharged AI growth that investors seek from major tech companies like it.
However, a closer examination of the company reflects some reasons for optimism, says Danil Sereda, a 5-star investor rated in the top 3% of TipRanks’ stock pros.
“I think the sharp sell-off we saw in INTC stock price was an overreaction. In reality, things are not that bad,” Sereda opined. “I would not write Intel off prematurely.”
“Intel may not be efficient in terms of financials yet, but it’s still too big and significant a player in the market to ignore its potential to influence the market at this stage,” Sereda added.
Furthermore, Sereda sees promise in Intel’s recent initiatives, such as the Gaudi 3 accelerator, hinting at a potential resurgence in the AI space. He foresees a competitive edge in the long haul, particularly in enterprise AI applications where efficacy and cost-efficiency are paramount.
Based on all of the above, Sereda has upgraded Intel shares to Buy. (To watch Sereda’s track record, click here)
Despite Sereda’s optimistic outlook, Wall Street analysts have generally taken a more cautious stance. The consensus rating for INTC stands at Hold, based on 26 Hold recommendations, and 3 Buys and Sells each. Nevertheless, the average price target of $37.87 suggests a potential upside of approximately 25% from current levels. (See INTC stock forecast)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
