Nvidia, AMD to pay 15% of China chip sales revenue to US govt- FT
Investing.com - Truist Securities has maintained its Hold rating on Intel (NASDAQ:INTC) with a price target of $21.00, according to a recent analyst note. The semiconductor giant, currently valued at $98.1 billion, has seen its stock trading at $22.49, with InvestingPro data showing an overall FAIR financial health score.
The firm observed that Intel’s Foundry Direct Connect event provided insights into CEO Lip-Bu Tan’s strategy, which appears to align with his predecessor’s approach, with continued emphasis on building Intel’s manufacturing and foundry capabilities.
Truist Securities noted that Intel’s wider-than-typical Q2 revenue guidance range reflects volatility caused by tariffs, suggesting a potentially constructive setup for investors who believe tariff volatility is largely behind the market, though concerns remain about tariff-related pull-ins potentially affecting near-term demand.
The ongoing restructuring and layoffs at Intel continue to attract attention, with Truist Securities indicating the company appears focused on reducing management layers to simplify organizational complexity.
The firm identified Intel’s upcoming earnings report on July 24 as the next significant catalyst for the stock, noting that while expectations appear muted, the earnings announcement could serve as a positive rather than negative catalyst, though with low conviction.
In other recent news, Intel has announced a strategic shift in its foundry focus, halting external sales of its 18A and 18AP nodes to concentrate on the 14A node, according to UBS. This decision aligns with UBS’s previous analysis of Intel’s foundry strategy, although the firm maintains a Neutral rating on the stock. Mizuho (NYSE:MFG) has raised its price target for Intel to $23.00, while keeping a Neutral rating, citing Intel’s efforts to reverse market share losses and refocus on AI. Mizuho’s revenue and earnings estimates for the upcoming fiscal years remain largely in line with consensus expectations, with slight adjustments to earnings per share projections.
In a potential shift in strategy, Intel’s new CEO, Lip-Bu Tan, is reportedly considering focusing more on the 14A technology to better compete with Taiwan Semiconductor Manufacturing Co. Meanwhile, Intel and Nokia (HE:NOKIA) have expanded their collaboration to enhance 5G network efficiency, utilizing Intel Xeon 6 processors to achieve significant power and performance improvements. Additionally, Intel has announced several key leadership appointments to bolster its engineering capabilities, including the appointment of Greg Ernst as chief revenue officer and new engineering leaders to drive AI and networking developments.
These developments come as Intel aims to strengthen customer relationships and improve its engineering focus under CEO Lip-Bu Tan’s leadership. Despite these strategic moves, Intel faces challenges with its 18A fabrication process, while competitors like TSMC remain on schedule with their technologies. The company’s collaboration with Nokia is expected to yield energy efficiency gains for 5G networks, aligning with operators’ modernization needs.
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