In a report released yesterday, Vivek Arya from Bank of America Securities maintained a Hold rating on Intel (INTC – Research Report), with a price target of $23.00.
Vivek Arya’s rating is based on Intel’s strategic commitment to its foundry business and the leadership of its new CEO, Lip-Bu Tan. The company has shown progress with its 18A and 14A nodes, which are generally on track, and has added Qualcomm as a new foundry customer. However, despite these positive developments, Intel faces significant challenges as a smaller player in the IDM/foundry space, with competitive pressures from AMD and ARM in the x86 market and a rapidly evolving AI demand landscape.
While Intel’s roadmap remains largely unchanged and its new nodes are progressing, the company has not yet secured marquee compute customers for its 18A node, such as Apple or Nvidia. The lack of major financial metric reiterations and the competitive pressures in CPUs and AI accelerators contribute to the Hold rating, as the potential for a turnaround is balanced by these ongoing challenges.
In another report released on April 28, DBS also maintained a Hold rating on the stock with a $20.00 price target.
INTC’s price has also changed moderately for the past six months – from $22.900 to $20.340, which is a -11.18% drop .