Intel price target lowered to $32 from $35 at BofA

BofA analyst Vivek Arya lowered the firm’s price target on Intel (INTC) to $32 from $35 and keeps an Underperform rating on the shares. While Intel delivered “solid” Q3 results and raised Q4 guide, largely driven by a normalizing PC market, the firm reiterates its Underperform rating given its view that a faster pace of new products could keep costs elevated and gross margin closer to mid-40s rather than “bullish investor scenarios of 50%.” In addition, restructuring benefits are largely done now with opex starting to grow year-over-year and a competitive threat from ARM (ARM) in servers and PC is likely to materialize in calendar year 2025, the analyst tells investors.