Robert W. Baird analyst Tristan Gerra has maintained their neutral stance on INTC stock, giving a Hold rating yesterday.
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Tristan Gerra has given his Hold rating due to a combination of factors surrounding Intel’s recent collaboration with Nvidia. This partnership is set to enhance Intel’s position in the data center and PC markets by integrating Nvidia’s RTX GPUs into Intel’s x86-based SOCs, which could potentially increase Intel’s market share in personal computing. Additionally, the agreement involves Nvidia purchasing a significant amount of Intel’s stock, indicating a strong mutual commitment.
However, while the collaboration presents long-term benefits and opportunities for Intel, such as increased AI exposure and a boost in foundry revenue, it also poses potential risks. The partnership could lead to competitive pressures on AMD’s x86 business, and the impact on custom ASICs remains uncertain. These mixed implications contribute to the Hold rating, as the positive aspects are balanced by potential challenges and uncertainties in the market dynamics.
Gerra covers the Technology sector, focusing on stocks such as Intel, Micron, and Interlink Electronics. According to TipRanks, Gerra has an average return of 10.7% and a 55.00% success rate on recommended stocks.