Intel Upgraded To Buy - Analyst Highlights Strong Gains from Upcoming Server Products And Foundry Growth
Portfolio Pulse from Anusuya Lahiri
Mizuho analyst Vijay Rakesh upgraded Intel Corp (INTC) from Neutral to Buy and increased the price target from $37 to $50, citing upcoming server product launches, foundry customer announcements, and the potential value from the Altera FPGA spinoff. The analyst also raised FY24E and FY25E revenue and EPS estimates above consensus, noting Intel's discount compared to AMD and Nvidia and its idiosyncratic tailwinds.
November 16, 2023 | 4:42 pm
News sentiment analysis
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NEGATIVE IMPACT
Intel's upgrade may put competitive pressure on AMD, as Intel is expected to gain ground with its new server products and foundry services.
Intel's positive outlook and potential market share gains in the server segment could be seen as a competitive threat to AMD, possibly affecting AMD's stock negatively in the short term.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Nvidia, similar to AMD, could experience competitive headwinds from Intel's strengthened position in the server market and foundry services.
Intel's advancements and raised expectations could pose a threat to Nvidia's market position, potentially impacting NVDA's stock price negatively in the short term.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Intel's upgrade to Buy by Mizuho and price target increase to $50 reflects optimism about its server products, foundry growth, and the Altera FPGA spinoff. Raised FY24E and FY25E estimates suggest strong future performance.
The upgrade by a reputable analyst, along with raised revenue and EPS estimates, typically leads to positive investor sentiment and could result in a short-term stock price increase.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100