Intel's $10B Cost Cut Seen as Necessary but Not Enough for Competitive Edge: Analyst
Portfolio Pulse from Anusuya Lahiri
Goldman Sachs analyst Toshiya Hari maintained a Sell rating on Intel Corp (NASDAQ: INTC) with a price target of $22, citing that the $10 billion cost cut is necessary but insufficient for a competitive edge. Hari remains cautious, awaiting signs of stabilization in Data Center computing and progress in Intel's Foundry strategy. Intel's notebook and desktop CPU revenues increased year-on-year, but growth is expected to decelerate in the third quarter. AMD gained market share in the Server CPU market. Investors can gain exposure to Intel through Vanguard Information Tech ETF (NYSE: VGT) and Vanguard Value ETF (NYSE: VTV).
August 05, 2024 | 5:44 pm
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NEGATIVE IMPACT
Goldman Sachs analyst Toshiya Hari maintained a Sell rating on Intel with a price target of $22, citing that the $10 billion cost cut is necessary but insufficient for a competitive edge. Intel's notebook and desktop CPU revenues increased year-on-year, but growth is expected to decelerate in the third quarter.
The analyst's Sell rating and the expectation of decelerating growth in notebook and desktop CPU revenues are likely to negatively impact Intel's stock price in the short term.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Investors can gain exposure to Intel through Vanguard Information Tech ETF (NYSE: VGT).
While VGT provides exposure to Intel, the impact on the ETF's price is likely to be neutral in the short term due to its diversified holdings.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30
NEUTRAL IMPACT
Investors can gain exposure to Intel through Vanguard Value ETF (NYSE: VTV).
While VTV provides exposure to Intel, the impact on the ETF's price is likely to be neutral in the short term due to its diversified holdings.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30
POSITIVE IMPACT
AMD gained market share in the Server CPU market in the second quarter, as noted by Goldman Sachs analyst Toshiya Hari.
The gain in market share in the Server CPU market is a positive indicator for AMD, likely leading to a short-term positive impact on its stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50