Intel (NASDAQ:INTC) has seen a turbulent market reaction following the end of the Pat Gelsinger era. The departure of the former CEO and 40-year company veteran has cast a shadow over the company, with shares plunging about 19% in the weeks since Gelsinger’s exit and down 60% overall this year.
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Truth be told, many of Intel’s issues predate Gelsinger’s return to helm the company in 2021, including its failure to anticipate the AI revolution and its missed opportunity in the smartphone chip boom. However, Gelsinger’s tenure has also seen its share of disappointments, such as declining revenues and significant losses – $7 billion in 2023 alone – from Intel’s foundry business.
While acknowledging Intel’s challenging situation and disappointing numbers, one investor, known by the pseudonym Oakoff Investments, believes that Intel is not far from turning things around.
“Despite that underperformance, I believe INTC should soar as soon as the new CEO is announced because the negativity surrounding the company right now seems to be overblown,” the investor opined.
Oakoff explains that the combination of strategic cost-cutting and growing demand for AI and data center products should help Intel right the sinking ship. Indeed, the road to recovery will be far from smooth, but Oakoff argues that the right management will enable Intel to take advantage the growing AI semiconductor market.
“Intel is one of the few vendors with a diverse portfolio to support a larger portion of this growing segment,” Oakoff asserts. The investor also believes that Intel should remain the market share leader for CPUs, PCs, and servers for the foreseeable future.
With this promising runway ahead, Oakoff reminds investors that the current negativity surrounding INTC is pushing the stock into bargain territory. “The stock is trading at a fraction of its peers’ FY2026 PEG ratio, making it extremely cheap,” the investor explains.
Looking ahead, Oakoff expresses confidence in Intel’s potential recovery. “All the company needs now is strong management,” the investor concludes, reiterating a Buy rating on INTC shares. (To watch Oakoff’s track record, click here)
As mentioned earlier, Wall Street is not nearly as bullish as Oakoff. With 1 Buy, 21 Hold, and 5 Sell ratings, Intel claims a consensus Hold (i.e. Neutral) rating. However, its 12-month average price target of $24.53 implies an upside of roughly 26% from current levels. (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.
