Needham analyst Quinn Bolton has maintained their neutral stance on INTC stock, giving a Hold rating today.
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Quinn Bolton has given his Hold rating due to a combination of factors impacting Intel’s current and future performance. Despite Intel reporting better-than-expected results, the company’s gross margin is under pressure, falling short of market expectations by approximately 130 basis points. This is attributed to a shift in product mix towards newer offerings like Lunar Lake and the initial ramp-up of Panther Lake, which are seen as primary challenges.
Moreover, Intel’s strategic turnaround is anticipated to require more time, as the company is currently losing market share in data centers and has yet to establish a competitive position in the AI sector. The success of Intel’s 14A process node is also contingent on securing external customers, adding another layer of uncertainty. Consequently, these factors contribute to the decision to maintain a Hold rating on Intel’s stock.