Intel (NASDAQ:INTC) shares have had to confront a steep decline this year, embodying the notion that sometimes one must hit rock bottom before any signs of recovery appear.
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The company has so far missed out on the record-breaking AI bonanza, its foundry segment continues to bleed substantial losses, and, to make matters worse, the Silicon Valley pioneer was ousted from the Dow Jones Industrial Average earlier this month.
However, the October 31 earnings report brought a ray of optimism to investors. Intel offered an upbeat outlook for the December quarter, forecasting an adjusted EPS of 12 cents – significantly exceeding the expected 8 cents. Since then, Intel shares have surged ~14%, outperforming the Nasdaq’s 5% gain.
Adding to this optimism, a bullish voice on Intel’s potential resurgence comes from On the Pulse, a 5-star investor ranked in the top 4% of TipRanks’ stock experts. On the Pulse sees promising progress in Intel’s efforts to capitalize on the burgeoning AI market.
“The Gaudi 3 AI accelerator is the key product here that could move the needle for Intel moving forward,” writes the investor, adding that “sales of this chip just kicked off in 3Q24.”
Moreover, the investor highlights Intel’s ambitious forecast of delivering up to 100 million AI-enabled PCs by the end of 2025.
“Growth in AI PCs, which are specifically designed to run artificial intelligence applications, could be a lever for Intel to return to growth,” On the Pulse stated.
Confident in Intel’s recovery potential, the investor rates Intel stock a Strong Buy, believing it remains undervalued at current levels. (To watch On the Pulse’s track record, click here)
Yet, Wall Street is still taking a wait-and-see approach to Intel. With 1 Buy, 22 Hold, and 7 Sell recommendations, INTC claims a Hold (i.e. Neutral) consensus rating. Its 12-month average price target of $24.43 suggests shares will stay range-bound for the foreseeable future. (See INTC stock ratings)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
