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On Wednesday, Stifel analysts maintained a Hold rating on Intel stock (NASDAQ:INTC) with a steady price target of $21.00, above the current trading price of $19.86. According to InvestingPro data, the stock appears slightly undervalued based on its Fair Value calculations. The decision follows attendance at Intel’s Foundry Direct Connect 2025 Conference in San Jose. Notably, 26 analysts have recently revised their earnings expectations downward for the upcoming period. Intel’s CEO Lip-Bu Tan opened the event, underscoring the company’s dedication to its foundry business. The conference showcased Intel’s advancements in process and packaging technologies, as well as its medium-term strategic plans. This strategic pivot comes as Intel, with its substantial market capitalization of $86.45 billion and annual revenue of $53.04 billion, aims to reverse its recent performance trends.
The analysts expressed optimism regarding Intel’s new direction, which includes partnering with a broad range of ecosystem allies, fostering an engineering-focused culture, and making strategic technological investments aimed at fulfilling customer requirements. However, they noted that Intel must enhance its responsiveness and predictability to achieve long-term success.
The Stifel team also highlighted the potential benefits for Electronic Design Automation (EDA) companies, citing Cadence Design Systems (NASDAQ:CDNS) and Synopsys (NASDAQ:SNPS), both rated as Buy, as likely to gain from the increased focus on intellectual property and the facilitation of digital design workflows.
Intel’s commitment to the foundry sector is part of its broader efforts to compete in the global semiconductor industry, where demand for advanced chipmaking capabilities is escalating. The company’s strategy to engage with various partners and prioritize engineering excellence is a response to the evolving needs of the market.
The analysts’ reiterated Hold rating and price target reflect their view of Intel’s current position and outlook based on the information presented at the conference. The price target of $21.00 remains unchanged, suggesting that while the company is making positive strides, the analysts advise caution until more tangible results are seen.
The focus on Intel’s progress comes at a time when the semiconductor industry is facing numerous challenges, including supply chain disruptions and intense competition. Intel’s efforts to transform its operational capabilities and strategic investments could be crucial in determining its future trajectory within the industry. InvestingPro analysis reveals that Intel currently maintains a weak financial health score, though analysts predict a return to profitability this year. For deeper insights into Intel’s financial metrics and future prospects, including exclusive ProTips and comprehensive analysis, check out the detailed Pro Research Report available on InvestingPro.
In other recent news, Intel Corporation reported its Q1 2025 earnings, exceeding expectations with an earnings per share (EPS) of $0.13, significantly above the forecast of $0.0033. The company’s revenue reached $12.7 billion, surpassing the projected $12.25 billion. Despite the earnings beat, Intel’s stock fell nearly 5% in aftermarket trading, a decline attributed to broader market concerns and macroeconomic uncertainties. In terms of analyst ratings, Cantor Fitzgerald maintained a Neutral rating with a $26 price target, while Seaport Global Securities initiated coverage with a Sell rating and an $18 target, citing challenges in Intel’s manufacturing and market share losses. Rosenblatt Securities also maintained a Sell rating but lowered the price target from $18 to $14, expressing concerns about Intel’s demand outlook for the second quarter of 2025. Mizuho (NYSE:MFG) Securities adjusted its price target to $22 from $23, keeping a Neutral rating, and highlighted potential delays in Intel’s product roadmap. These developments reflect ongoing adjustments and challenges as Intel navigates the current economic environment and invests in future capabilities.
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