Tristan Gerra, an analyst from Robert W. Baird, maintained the Hold rating on Intel. The associated price target was raised to $50.00.
Claim 50% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Tristan Gerra has given his Hold rating due to a combination of factors balancing a better demand backdrop with persistent structural challenges. He notes that AI-driven strength in x86 demand is creating supply tightness, which is supportive for Intel’s pricing and mix and likely marks a low point for gross margins in the first quarter. At the same time, Intel is maintaining capital spending discipline despite this strong demand, and advanced packaging is emerging as a more meaningful, yet still under-realized, opportunity within its technology portfolio. Recent quarterly results were slightly ahead of expectations, reflecting some operational progress.
However, Gerra emphasizes that Intel still faces material execution risks that limit near‑term upside. Yield performance on its 18A and 14A process nodes remains below target, pressuring profitability and constraining the company’s ability to fully capitalize on demand. In addition, the foundry strategy is not yet de‑risked: potential large customer wins are still uncertain and, even in a positive scenario, meaningful volume production would not begin until late 2028 or 2029. Combined with below-seasonal revenue guidance for the first quarter, driven by both internal capacity bottlenecks and shortages at outsourced suppliers, these factors justify a neutral, or Hold, stance on the shares at this time.
In another report released yesterday, Mizuho Securities also maintained a Hold rating on the stock with a $48.00 price target.