Robert W. Baird analyst Tristan Gerra has reiterated their neutral stance on INTC stock, giving a Hold rating yesterday.
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Tristan Gerra has given his Hold rating due to a combination of factors affecting Intel’s current and future performance. While Intel’s 14A process shows promising performance and yields, indicating potential breakthroughs for 2026, the company still faces challenges in improving its cost structure and competitiveness in the data center CPU market. These improvements are expected to be a multi-year process, which tempers immediate optimism.
Additionally, Intel’s strategy to attract large customers to its foundry business or potentially separate its manufacturing assets into a joint venture could provide upside to the stock. However, uncertainties remain, particularly with the deconsolidation of Altera and the initial dilutive impact of new products like Lunar Lake and Panther Lake. The company’s recent financial results have exceeded expectations, but the outlook for gross margins and capital expenditures remains cautious. These mixed signals justify the Hold rating as Intel navigates its turnaround efforts.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $38.00 price target.