Morgan Stanley analyst Joseph Moore maintained a Hold rating on Intel today and set a price target of $23.00.
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Joseph Moore’s rating is based on Intel’s current strategic considerations and market positioning. Intel is reportedly contemplating a shift in its foundry strategy from the 18A process to the 14A process, which could potentially lead to significant financial write-downs. However, Moore believes that the impact of this shift would be minimal, as the initial foundry projects are expected to be small, and the economic implications for 2025/26 are not substantial.
Furthermore, Moore notes that Intel’s management has consistently highlighted that achieving breakeven in its foundry business is not heavily reliant on external customers, which mitigates the risk of the reported strategic shift. While the potential delay in foundry and AI projects to 2027 could realign Intel’s priorities positively, Moore remains cautious. He aligns with the view that Intel’s path to recovery is a long one, hence the Hold rating, reflecting a balanced perspective on Intel’s future prospects.
In another report released today, UBS also maintained a Hold rating on the stock with a $21.00 price target.