Intel (NASDAQ:INTC) shares rose swiftly towards the end of last week amid reports that the Silicon Valley pioneer might be a target of a strategic acquisition by an unnamed company. This has come on the heels of a rough stretch for Intel, which is down more than 50% over the past twelve months.
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Concerned about the company’s direction, Intel’s Board of Directors took the weighty step of firing CEO Pat Gelsinger in December. The company’s shares haven’t exactly jumped up on the news, however, as the market clearly remains worried that the company has not quite figured out how to right the ship.
However, the low expectations could actually serve the company, believes one top investor known by the pseudonym Quad 7 Capital. Even before the news broke of the potential acquisition, Quad 7 had already posited that Intel was on the road to recovery.
“Despite current challenges, INTC’s low stock price offers a compelling long-term entry point, with substantial growth expected in 2025 and beyond,” explains the 5-star investor, who sits in the top 3% of TipRanks’ stock pros.
Quad 7 explains that there are a number of reasons for optimism, including strategic investments in data centers and AI. The investor expects both of these segments to enjoy quarter-over-quarter increases in the “high single-digits” when Intel reports its Q4 numbers at the end of the month.
That should be part of of an overall trend of improvemen for the embattled company, predicts Quad 7, with the turnaround beginning in earnest after Q1 2025.
“We expect substantial improvement as 2025 moves on, including year-over-year revenue growth, cash flow growth, and earnings growth,” asserts the investor.
Regarding the low expectations from the market, this is in fact an advantage for Intel. Calling the company’s revenue guide both low and realistic, Quad 7 is looking for Intel to surpass expectations in the year to come.
“The future is bright,” concludes Quad 7 Capital, who is rating the company a Buy. (To watch Quad 7 Capital’s track record, click here)
Wall Street, on the other hand, remains on the fence regarding Intel’s prospects. With 1 Buy, 21 Hold, and 4 Sell ratings, Intel holds a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $24.42 would yield gains in the mid-teens. (See INTC stock forecast)
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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.
