Intel initiated with a Sector Perform at RBC Capital

RBC Capital analyst Srini Pajjuri initiated coverage of Intel (INTC) with a Sector Perform rating and $50 price target Intel’s management has done a “commendable job” in right-sizing the business, strengthening the balance sheet, and entering into a strategic agreement with Nvidia (NVDA), but higher memory prices and supply constraints could impact near term revenue and margin performance, the analyst says. In addition, Intel lacks a “Data Center AI narrative” and gross margin upside and Foundry progress are key for continued outperformance, but both are dependent on manufacturing yields, where visibility is limited, the analyst added.