Raymond James analyst Srini Pajjuri has maintained their neutral stance on INTC stock, giving a Hold rating today.
Srini Pajjuri has given his Hold rating due to a combination of factors surrounding Intel’s current market position and strategic uncertainties. The appointment of Lip-Bu Tan as the new CEO is a positive development, yet it raises questions about whether Intel will maintain its current structure or opt for a split between its Product and Foundry businesses. The potential split could unlock value, but without it, the stock remains dependent on the company’s ability to deliver on its manufacturing roadmap and new product strategies.
Additionally, Intel faces challenges in the PC and non-AI server markets, where demand is lackluster, and its server CPU products are still trailing behind competitors like AMD. The absence of a strong AI narrative in its Data Center operations further complicates its competitive stance. As a result, Pajjuri remains cautious, preferring to wait for more clarity on the new CEO’s strategic direction before making a more definitive recommendation.
In another report released today, DBS also maintained a Hold rating on the stock with a $22.00 price target.
INTC’s price has also changed slightly for the past six months – from $19.360 to $20.680, which is a 6.82% increase.