Street Calls of the Week
Investing.com - Barclays has raised its price target on Intel (NASDAQ:INTC) to $25.00 from $19.00 while maintaining an Equalweight rating on the stock. The semiconductor giant, currently trading at $30.57, has shown remarkable momentum with a 26.95% gain in the past week. According to InvestingPro analysis, the stock’s RSI indicates overbought territory.
The price target increase follows Intel’s integration of x86 with NVLink, which Barclays views as expanding Intel’s data center opportunities while raising questions about the future of ARM architecture in the space.
Barclays considers this development a net positive for Intel, potentially leading to higher attachment rates in future AI systems, while also representing a step toward more "real" AI PCs.
The firm notes this integration creates more legitimate competition for AMD, which currently dominates this market segment, while Nvidia remains committed to ARM but could potentially incorporate x86 in future products.
Barclays suggests the move represents another investment in Intel that likely has implicit U.S. government support, though it cautions that Intel’s core technology issues remain unresolved despite significant financial investments.
In other recent news, Intel Corporation has announced a strategic partnership with Nvidia, which includes a $5 billion investment from Nvidia in Intel’s common stock. This collaboration aims to develop custom data center and PC products, integrating Nvidia’s AI and accelerated computing technologies with Intel’s CPU capabilities. Additionally, Intel will manufacture custom x86 CPUs for Nvidia, potentially boosting Intel’s market share and foundry revenue. Baird has positively assessed this partnership, viewing it as incrementally beneficial for Intel.
Wedbush has upgraded Intel’s stock rating, highlighting the company’s potential in the AI sector, which could see significant growth by the end of the decade. Meanwhile, Truist Securities has maintained its Hold rating on Intel, noting the company’s progress in its turnaround efforts but emphasizing the uncertain path to recovery. In executive news, Michelle Johnston Holthaus, CEO of Intel Products, has announced her decision to resign. She will remain with the company in a non-executive capacity until March 2026 to assist with the transition.
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