What the bad jobs report means for markets
On Friday, Stifel analysts adjusted their outlook on Intel stock (NASDAQ:INTC), lowering the price target to $21.00 from the previous $25.00, while keeping a Hold rating on the shares. The revision follows Intel’s release of its fourth-quarter earnings, which surpassed both management guidance and consensus estimates. According to InvestingPro data, Intel’s stock is currently trading at $20.01, with analyst targets ranging from $19 to $31. The company’s Financial Health Score stands at "FAIR," though it’s currently not profitable over the last twelve months. The earnings boost was attributed to stronger-than-anticipated growth in the Client Computing Group (CCG), increased Intelligent Systems (NYSE:CCRD) Group (IMS) equipment sales, and a recovery in the Network and Edge Group (NEX), particularly with edge products.
Despite the positive performance in the last quarter, Intel’s first-quarter guidance fell short of consensus expectations. The company’s recent announcements have led investors to adjust their focus towards the longer-term outlook. With revenue of $54.25 billion in the last twelve months and a market cap of $86.3 billion, Intel remains a prominent player in the semiconductor industry. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, which covers what really matters for intelligent investing decisions. Intel has signaled that its recovery might be delayed, as the launch of the Clearwater Forest (18A) has been postponed to 2026, a year later than initially planned.
Intel also acknowledged that while the Gaudi accelerator yielded valuable insights, the future of its AI processor strategy remains uncertain. The company indicated that Falcon Shores would pivot to an internal test platform, and production-related development will now concentrate on a rack-level project named Jaguar Shores.
The Stifel analyst expressed that uncertainties continue to overshadow certainties regarding Intel’s future, suggesting that 2025 is likely to be another year of transition for the company. The delay in product launches and the shift in development focus are key factors contributing to the analyst’s tempered expectations and the lowered price target for Intel stock. InvestingPro data shows the stock has experienced a significant decline, with a -52.93% return over the past year and a -34.49% return over the last six months. Discover more detailed analysis and 8 additional ProTips about Intel’s future prospects on InvestingPro.
In other recent news, Intel Corporation has seen several adjustments in stock price targets by various analysts. Baird and Roth/MKM analysts have both downgraded the stock price target from $25 to $20, maintaining a neutral rating. This adjustment follows Intel’s Q1 2025 guidance, which was set significantly below the typical seasonal trends. Rosenblatt Securities, on the other hand, reaffirmed a sell rating on Intel’s stock with a target price of $20, citing weak PC demand, limited data center sales, and ongoing market share losses.
Recent developments include Intel’s collaboration with United Microelectronics Corporation on a pilot production line in Arizona and the construction of its new manufacturing complex, known as the Silicon Heartland, in Ohio. The company also announced its intention to spin off its venture capital arm, Intel Capital, into an independent fund.
The company’s earnings for the fourth fiscal quarter of 2024 are expected to align with current expectations, with revenue pegged at $13.8 billion and Non-GAAP EPS of $0.12. The first fiscal quarter of 2025, however, has a slightly negative forecast, with revenue forecasts at $13.0 billion and Non-GAAP EPS of $0.17.
Global Equities Research has encouraged clients to take advantage of the current weakness in Intel’s stock, citing strong prospects for the company’s AI initiatives. Meanwhile, the former CEO of Intel, Pat Gelsinger, purchased NVIDIA (NASDAQ:NVDA) stock during its recent dip, praising the potential of AI technology.
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