Stock market today: S&P 500 drops for fifth day as focus shifts to Powell’s speech
Investing.com - UBS maintained its Neutral rating on Intel (NASDAQ:INTC) with a price target of $25.00, according to a research note published Tuesday. This aligns with the broader market sentiment, as InvestingPro data shows a consensus Hold rating from analysts, with 26 analysts recently revising their earnings expectations downward.
UBS analyst Timothy Arcuri explained that downside risk for Intel stock is likely protected by tangible book value, estimated at approximately $17-18 following the sale of the Altera stake, provided Intel can reduce costs enough to reach sustainable cash flow breakeven. Currently trading at 1.06 times book value and showing an 18% gain year-to-date, Intel appears fairly valued according to InvestingPro’s Fair Value model.
The firm has remained Neutral on Intel because it sees limited upside potential due to insufficient earnings power at the combined company level to push the stock much higher than the mid-$20 range.
UBS noted that Intel will need to allocate a significant portion of incremental operating profit to Brookfield and Apollo for SCIP agreements in Ireland and Arizona, which constrains earnings growth potential.
The research note suggested that if the market began assigning independent valuations to different segments of Intel’s business—particularly its manufacturing assets based on global foundry comparables—a case could be made for an upside valuation of approximately $40 per share.
In other recent news, Intel has been the subject of discussions regarding a potential equity stake by the U.S. government. The Trump administration is reportedly exploring the possibility of using Chips Act funds to acquire a stake in the company. This development is still in the early stages, with options being considered such as converting existing Chips Act grants into equity or allocating new funding. Additionally, Moody’s Ratings downgraded Intel’s senior unsecured ratings to Baa2 from Baa1, citing a weak profitability outlook over the next 12 to 18 months. The downgrade reflects Intel’s challenges in maintaining its market position in the microprocessor sector and high operating losses in its foundry operations. Meanwhile, Bernstein has reiterated its Market Perform rating for Intel, maintaining a price target of $21.00. This rating comes amid reports of potential Trump administration investment in the chipmaker. Furthermore, a Bank of America review highlighted that AMD (NASDAQ:AMD) and ARM-based processors continue to gain market share against Intel, although Intel’s shipments did see a slight increase in the second quarter of 2025.
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