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On Thursday, Cantor Fitzgerald reiterated a Neutral rating on Intel Corporation (NASDAQ:INTC) shares, maintaining a price target of $29.00. The firm’s commentary highlighted the recent appointment of Lip-Bu Tan as CEO, acknowledging his solid qualifications for the role. However, they noted that Tan faces significant challenges ahead, particularly in advancing Intel’s 18A and leading-edge manufacturing capabilities. According to InvestingPro data, Intel, with its substantial $89.54B market cap, has been struggling with profitability, reporting a negative net income of $18.76B in the last twelve months.
The analysts at Cantor Fitzgerald expressed continued support for the potential success of Intel’s 18A/14A technologies, while also recognizing the difficulties the company may encounter in this endeavor. They emphasized the importance of a swift and proactive decision-making process at Intel as a key factor in unlocking the company’s value, as reflected in their established price target. InvestingPro analysis reveals the company is currently burning through cash, with negative free cash flow of $15.66B, highlighting the urgency of operational improvements.
The firm also commented on Tan’s previous departure from Intel’s Board of Directors in August 2024 after serving for 23 months. Tan’s resignation was attributed to his frustration with the former CEO and the board’s lack of aggressiveness, particularly regarding cost-cutting measures. The analysts suggested that, given his return as CEO with the same board in place, a change in board leadership could be beneficial. For deeper insights into Intel’s financial health and future prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
Cantor Fitzgerald also pointed out that the pool of qualified candidates willing to take on the CEO role at Intel and work with the current board was likely limited, implying that Tan’s hiring was not surprising. The firm’s stance on Intel remains cautious as the company navigates its strategic and leadership transitions, reflected in InvestingPro’s WEAK Financial Health Score and current trading price of $20.68.
In other recent news, Intel Corporation has appointed Lip-Bu Tan as its new CEO, effective March 18, succeeding interim co-CEOs David Zinsner and Michelle Johnston Holthaus. Tan, with over 20 years of experience in the semiconductor industry, is expected to drive innovation and success for the company. In a move to bolster security, Intel has expanded its Intel® Tiber™ Trust Services portfolio, offering enhanced trust and security solutions for enterprises facing regulatory demands and cyberthreats. Additionally, Intel launched the Intel Assured Supply Chain program, providing increased transparency in the silicon manufacturing process, which will be available on select Intel Core Ultra (Series 2) products starting in the second half of 2025.
Meanwhile, TF International Securities’ Ming-Chi Kuo has shared insights about potential joint venture considerations between Intel and Taiwan Semiconductor Manufacturing Company (TSMC), although these discussions are still in early stages. Broadcom (NASDAQ:AVGO) Inc. recently dismissed rumors of acquiring a unit of Intel, with CEO Hock Tan stating they are focused on AI and VMware (NYSE:VMW) projects. This clarification led to a negative reaction in Intel’s stock, reflecting the market’s sensitivity to merger and acquisition news. These developments highlight Intel’s ongoing efforts to address competition and technological advancements in the semiconductor industry.
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