Seaport ups Intel on near-term catalysts, remains cautious on long-term prospects

Published 25/09/2025, 09:30
Updated 25/09/2025, 13:40
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Investing.com -- Seaport Research Partners upgraded Intel to Neutral from Sell, citing near-term catalysts but keeping a cautious view on the company’s long-term fundamentals.

The brokerage said the stock is likely to be supported in the short run by follow-on investments and possible stop-gap solutions for its troubled fabrication plants.

“We do not agree with the path Intel and its Board are taking with regards to the future of the company’s fabs,” Seaport’s senior analyst Jay Goldberg wrote, adding that turning them around will be “a multi-year, deeply complex, painful process.”

He argued the most likely scenario is “some form of fire sale or outright shut down,” which could provide a valuation boost in the near term.

Goldberg believes that the market assigns a significant negative value to Intel’s foundry operations, estimating that if Intel’s products were valued at multiples similar to AMD’s, its market capitalization would be more than double the current level.

“The market is essentially arguing for Intel to close its fabs,” he said.

The analyst also pointed to potential strategic investments from major technology companies or further involvement from the U.S. government, both of which could drive the share price higher in the near term.

Political factors could play a role as well, with scenarios floated such as Taiwan Semiconductor Manufacturing Co. making a deal under pressure, though Seaport viewed such outcomes as unlikely to solve Intel’s deeper problems.

Looking longer term, Goldberg flagged structural challenges including Intel’s lack of a clear AI strategy, margin pressure across its product portfolio, and possible cash flow constraints as it reshapes its manufacturing and product plans.

“In the near-term, we think those sorts of headlines will drive the share price. Over a longer time horizon, the company still faces many fundamental problems,” he wrote.

Intel shares closed 6.4% higher on Wednesday after Bloomberg reported that the chipmaker has held early talks with Apple (NASDAQ:AAPL) about a potential investment. The discussions have reportedly also included ways the two companies could deepen their collaboration, though no deal has been reached and the outcome remains uncertain.

Intel was set to extend its gains on Thursday, climbing over 4% in premarket trading. 

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