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Intel’s Hold Rating Reflects Strategic Shifts and Market Uncertainties

Intel’s Hold Rating Reflects Strategic Shifts and Market Uncertainties

Benchmark Co. analyst Cody Acree has reiterated their neutral stance on INTC stock, giving a Hold rating today.

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Cody Acree’s rating is based on Intel’s current market position and future prospects. Despite a positive performance in the June quarter, with revenue and EPS exceeding expectations, Intel’s outlook for the coming quarters remains cautious. The company’s foundry business, particularly the development of its 18A and 14A manufacturing processes, is a significant factor in this rating. The CEO’s strategic shift towards economically sensible investments, rather than rapid expansion, raises questions about Intel’s ability to attract new customers and compete with industry leaders like TSMC. Additionally, while Intel has made improvements in its Data Center segment, it continues to lose market share to AMD, and its AI strategy remains somewhat unclear. These factors contribute to the Hold rating, reflecting both the potential and the uncertainties in Intel’s future performance.

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