After Intel (INTC) announced that former Cadence CEO and former Intel board member Lip-Bu Tan will become CEO, Morgan Stanley analyst Joseph Moore said the firm is “going to avoid rushing to judgement – we did that the last time – but directionally it does seem like a good outcome.” While the company’s “quick and decisive actions around the CEO decision is a good start,” the company’s headwinds remain significant, as slippage in the server roadmap, the lack of a near-term AI offering, a very competitive client CPU market, and over $10B in 12-month trailing losses in the foundry business leave the company with near-term challenges that have “no quick fix,” the analyst added. Morgan Stanley maintains an Equal Weight rating and $25 price target on Intel shares.
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