Intel Corp. INTC mentioned its priorities for 2025 with Citi Analysis analyst Christopher Danely, which incorporates the corporate’s AI ambitions, fixing CPU manufacturing points, and the appointment of a brand new CEO.
What Occurred: David Zinsner and Michelle Johnston Holthaus had been named because the interim co-CEOs of Intel on Dec. 2, 2024, whereas the corporate looked for a everlasting alternative. Former CEO Pat Gelsinger retired and stepped down from the board after over 40 years with the corporate.
Citi Analysis, in its analysis notice dated Jan. 9, 2025, highlighted the way it plans to work on probably the most urgent issues within the new 12 months. This contains fixing the product roadmap, fixing CPU manufacturing, and establishing a significant foothold within the AI market.
The notice additionally said that the corporate will streamline its operations with a aim to achieve market share within the CPU market in 2025. Citi reiterated its beliefs in Intel’s priorities.
Speaking in regards to the seek for a brand new CEO, the analysis notice added “We imagine Intel might announce a brand new CEO inside a few months and reiterate our Impartial ranking.” The worth goal remained unchanged at $22 per share, assigned on Nov. 26, 2024.
See Additionally: Intel Inventory Is The place It Was 27 Years In the past: How The World’s Main Chipmaker Misplaced The Plot, Thrice
Why It Issues: Intel’s market capitalization has considerably lagged behind its rivals.
Whereas Intel’s worth stands at $85.7 billion, Qualcomm Inc.’s QCOM market cap stands at $176.7 billion. Superior Micro Units Inc. AMD, a key rival, boasts a market capitalization that’s greater than double of Intel’s at $197.7 billion.
Nvidia Corp. NVDA towers above all of them with a staggering market capitalization of $3.43 trillion, highlighting the numerous hole in valuation throughout the semiconductor business.
Moreover, Intel’s thirteenth and 14th-generation processors had been stricken by persistent efficiency points. In August 2024, the chip maker introduced plans to chop 15% of its workforce, or about 15,000 jobs, regardless of receiving $8.5 billion in grants from the U.S. authorities.
Value Motion: Intel’s inventory was down 0.4% in premarket on Friday. The inventory has declined by 42.99% during the last six months and by 58.12% over a 12 months. Whereas, the Nasdaq 100 has outperformed with features of two.45% within the final six months and 26.13% over a 12 months.
About 31 analysts tracked by Benzinga have a consensus ranking of “promote” with a mean goal value of $30.23 on Intel inventory. BofA Securities, Northland Capital Markets, and Mizuho are among the many three most up-to-date analyst scores, and their common value goal stands at $24, implying a 20.85% upside.
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