Here’s Why Wall Street is Cautious on Intel Corporation (INTC)
Intel Corporation (NASDAQ:INTC) is among the Stocks That Will Double in the Next 5 Years.
The Street has a cautious rating on Intel Corporation (NASDAQ:INTC) as 68% of the 50 analysts covering the stock maintain a Hold rating on the stock, and the average 12-month price target also reflects a downside of roughly 27%.
However, recently on April 16, Bernstein raised the firm’s price target on Intel Corporation (NASDAQ:INTC) from $36 to $60, but maintained a Hold rating on the stock. The upgrade reflects a more positive view of Intel’s server‑oriented upcycle and improved profitability, even as Bernstein remains cautious on the PC side of the business.
The firm raised its assumptions for server and data‑center business, expecting Xeon‑related revenue and pricing to hold up better than the broader market consensus. At the same time, the firm has increased its gross margin estimates, driven by better product mix, stronger pricing in higher‑margin segments, and cost discipline. Moreover, the Ireland fab repurchase from Apollo also reduces the level of non‑controlling interest (NCI) in the model, so more of the fab’s future profits flow straight to Intel’s bottom line.
Intel Corporation (NASDAQ:INTC) is an American company that manufactures central processing units (CPUs) and semiconductors.
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