Cantor maintains Intel stock Neutral with $26 price target

On Wednesday, Cantor Fitzgerald maintained a Neutral rating on Intel Corporation (NASDAQ:INTC), currently valued at $86.3 billion, with a consistent price target of $26.00. According to InvestingPro data, Intel’s stock has declined over 32% in the past year, while 26 analysts have recently revised their earnings expectations downward. The firm’s analysts attended Intel’s Foundry Direct Connect 2025 event, where the company’s top executives, including CEO Lip-Bu Tan, CTO Naga Chandrasekaran, and SVP Foundry Services Kevin O’Buckley, presented. The event focused on Intel’s dedication to its Foundry business, showcasing new products, technological advances, and updates on the 18A process development. While Intel currently shows weak financial health according to InvestingPro analysis, analysts project a return to profitability this year despite recent challenges.

Intel’s leadership used the platform to affirm the company’s Foundry strategy and its ongoing partnerships with leading industry figures. While analysts from Cantor Fitzgerald did not report any significant surprises from the event, they found it encouraging to witness the new CEO establish clear market expectations for Intel’s future performance.

The analysts’ commentary reflected a wait-and-see approach, as they look forward to further details on Intel’s initial Foundry customers, which could include prominent names like Nvidia (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO). Additionally, there is an anticipation of more information about investments into the joint venture by fabless companies, which Cantor Fitzgerald views as a probable outcome.

Intel’s stock rating remains unchanged following the event, with Cantor Fitzgerald suggesting that the risk/reward balance leans towards the upside. The firm is awaiting additional clarity on the company’s Foundry services customer base and the scale of fabless investments, which they believe are likely to develop over time.

In other recent news, Intel Corporation reported its Q1 2025 earnings, exceeding expectations with an earnings per share (EPS) of $0.13, significantly higher than the forecasted $0.0033. The company’s revenue reached $12.7 billion, surpassing the projected $12.25 billion. Despite this earnings beat, Rosenblatt Securities adjusted its outlook on Intel, reducing the price target to $14 from $18 while maintaining a Sell rating, citing concerns about demand in the second quarter of 2025. Seaport Global Securities also began coverage on Intel with a Sell rating and a price target of $18, pointing to challenges in manufacturing and market share losses to competitors like AMD (NASDAQ:AMD) and NVIDIA.

Mizuho (NYSE:MFG) Securities reduced its price target for Intel from $23 to $22, maintaining a Neutral rating, following Intel’s announcement of a $2 billion cut in capital expenditures. The company is focusing on streamlining operations, as highlighted by Intel’s new CEO, Lip-Bu Tan, who is implementing structural changes to enhance decision-making and innovation. Despite these efforts, analysts express skepticism about Intel’s ability to maintain market share in the PC and data center segments in the near term.

Intel’s Q2 revenue guidance ranges between $11.2 billion and $12.4 billion, with a gross margin expectation of 36.5%. The company faces ongoing macroeconomic challenges and potential tariff impacts, which could affect consumer and enterprise spending. The company’s strategy includes focusing on AI-driven product development and launching Panther Lake by year-end to improve its competitive position.

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