Chinese chip stocks jump as Beijing reportedly warns against Nvidia’s H20
On Friday, Goldman Sachs analyst Toshiya Hari revised the price target for Intel stock, listed on (NASDAQ:INTC), to $18.00 from a previous target of $19.00, while reiterating a Sell rating. The adjustment follows Intel’s recent financial performance, where the company exceeded fourth-quarter 2024 expectations but provided a weaker-than-anticipated revenue outlook for the first quarter of 2025. According to InvestingPro data, Intel’s current analyst consensus shows a mixed outlook, with price targets ranging from $19 to $31.
Intel’s management forecasted a 14% quarter-over-quarter decline in revenue for Q1 2025, which falls 5% below the Street consensus. This projection encompasses potential softness across all key business segments. The company’s current revenue stands at $53.1 billion, with a concerning gross profit margin of 32.7%. Additionally, the company anticipates a non-GAAP gross margin of 36.0%, marking a historic low for the past 25 years, with the exception of the third quarter of 2024, when an impairment charge impacted non-GAAP results. InvestingPro subscribers have access to over 10 additional key financial metrics and insights that could help evaluate Intel’s margin challenges.
The analyst acknowledged Intel’s transparency regarding its ongoing challenges during the earnings call but expressed continued concern for the stock’s prospects. Goldman Sachs suggests that before investors can confidently invest in Intel for the long term, the company must show stability in market share within its Data Center business and a consistent rise in profitability.
In light of the expected near-term difficulties in Intel’s Client Computing Group (CCG) and Data Center Artificial Intelligence Group (DCAI), Goldman Sachs has lowered its revenue and non-GAAP (excluding SBC) earnings forecasts for 2025 and 2026 by an average of 3% and 17%, respectively. This revision reflects the firm’s cautious stance on Intel’s performance and outlook.
In other recent news, Intel Corporation’s fourth-quarter earnings and revenue exceeded expectations, with $14.3 billion in revenue and Non-GAAP earnings per share (EPS) of $0.13. However, the company’s first-quarter guidance for 2025 fell short, projecting revenues of $12.2 billion and a Non-GAAP EPS of $0.00. Analyst firms such as Rosenblatt Securities, BofA, Needham, and Bernstein have made adjustments to their price targets for Intel, with targets ranging from $19 to $31. Other recent developments include the cancellation of Intel’s Falcon Shores GPU, the delayed release of its Clearwater Forest server CPU, and plans to introduce Granite Rapids and Diamond Rapids server technologies. Intel also announced collaborations with United Microelectronics Corporation and the construction of a new manufacturing complex in Ohio. These are recent developments impacting Intel’s strategic direction and operational efficiency.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.