Intel price target raised to $40 from $32 at Baird

Baird analyst Tristan Gerra raised the firm’s price target on Intel to $40 from $32 and keeps a Neutral rating on the shares. The firm said while gross margin cross currents and near-term AI spending diversion impacting data center TAM will likely act as stock upside buffers near term, and 2024 could be promising with key catalysts including a successful ramp for Intel 3, easy comps in data center revenue, a potential PC renewal driven by AI at the edge, along with foundry customer momentum.