Analyst Aaron Rakers of Wells Fargo maintained a Hold rating on Intel (INTC – Research Report), retaining the price target of $22.00.
Aaron Rakers has given his Hold rating due to a combination of factors surrounding Intel’s strategic and operational changes. The recent meeting with Intel executives highlighted the company’s focus on its 14A process as a pivotal point for its external foundry business, expected to gain traction in the second half of 2027. While there is optimism about Intel’s technological advancements, such as the PowerDirect and advanced packaging capabilities, the transition to these new processes is still in its early stages.
Additionally, Intel’s efforts to stabilize its server CPU market share and the ongoing development of its AI silicon strategy indicate potential growth areas, but these are still evolving. The company’s capital expenditure strategy, aiming to reduce equipment deployment lead times, reflects a cautious approach to expansion without firm customer commitments. These factors contribute to a balanced outlook, justifying the Hold rating as Intel navigates these transitional phases.
According to TipRanks, Rakers is a 5-star analyst with an average return of 17.4% and a 55.25% success rate. Rakers covers the Technology sector, focusing on stocks such as Intel, Micron, and Pure Storage.
In another report released yesterday, Bank of America Securities also maintained a Hold rating on the stock with a $23.00 price target.