Intel, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Tristan Gerra from Robert W. Baird reiterated a Hold rating on the stock and has a $20.00 price target.
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Tristan Gerra has given his Hold rating due to a combination of factors affecting Intel’s current and future performance. One of the primary concerns is the lack of significant revenue growth drivers, as Intel is not well-positioned in the AI market and faces delays in securing new foundry customers. The company’s future production capabilities, particularly for the 14A and 18A processes, are uncertain, with potential delays and a slow ramp-up in peak volumes, impacting profitability.
Additionally, Intel’s competitive position in its core markets remains weak, with no significant rebound in product architectures. The high costs associated with transitioning to a fabless model and the challenges of attracting IC designers to its foundry services add to the uncertainty. The company’s capital expenditure plans are expected to decrease, but share losses are likely to continue in the near term. Given these challenges, Gerra maintains a Hold rating, reflecting a cautious outlook on Intel’s ability to navigate these issues effectively.
According to TipRanks, Gerra is a 5-star analyst with an average return of 9.2% and a 52.00% success rate. Gerra covers the Technology sector, focusing on stocks such as Advanced Micro Devices, Seagate Tech, and Knowles.