{"id":14533,"date":"2023-09-20T18:25:21","date_gmt":"2023-09-20T18:25:21","guid":{"rendered":"https:\/\/prosfunds.com\/markets\/intel-stock-drops-why-analysts-are-skeptical-it-can-take-on-nvidia\/"},"modified":"2023-09-20T18:25:22","modified_gmt":"2023-09-20T18:25:22","slug":"intel-stock-drops-why-analysts-are-skeptical-it-can-take-on-nvidia","status":"publish","type":"post","link":"https:\/\/prosfunds.com\/?p=14533","title":{"rendered":"Intel Stock Drops. Why Analysts Are Skeptical It Can Take On Nvidia."},"content":{"rendered":"<div id=\"js-article__body\" itemprop=\"articleBody\" data-sbid=\"WP-BAR-0000749240\">\n<div data-layout=\"wrap\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          wrap\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--wrap\n    article__inset--lead\n  \"><\/p>\n<p>        <!-- eventually when we know what this card will be we can change it and leave this one --><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        img-wrap\n        article__inset__image\n      \" itemscope=\"\" itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<\/figure><\/div>\n<p>Intel probably was hoping for a better result from its annual technology conference than a share drop. Analysts are still skeptical over the chip maker\u2019s ability to simultaneously take on<br \/>\n        Nvidia<br \/>\n       in artificial intelligence, defend its core market, and build up its semiconductor-manufacturing business.\u00a0<\/p>\n<p>\n        Intel<br \/>\n       (ticker: INTC) headlined its Innovation event this week with a series of announcements on progress in AI chips. Wall Street analysts were happy enough with the technology but less so about comments tempering expectations of improvement in its gross margins.<\/p>\n<div class=\"paywall\">\n<p>Oppenheimer analyst Rick Schafer said Intel\u2019s 2024 gross margin was shaping up to be in the low-to-mid 40 percentage range, against the company\u2019s 60% long-term target. Oppenheimer has a Perform rating on Intel stock with no target price.\u00a0<\/p>\n<p>\u201cWe recognize Intel\u2019s efforts to regain process leadership and foster a foundry business but believe the company remains in prove-it mode as multiyear turnaround efforts play out. We remain sidelined here,\u201d Oppenheimer\u2019s Rick Schafer wrote.<\/p>\n<p>Intel stock was down 3% at $35.25 on Wednesday, having closed down 4.3% the previous day.<\/p>\n<p>Wedbush\u2019s Matt Bryson attributed the price drop to Intel executives\u2019 comments on gross margins. He said the conservative outlook seemed appropriate, as the company balances a series of new products. Bryson has a Neutral rating on Intel stock with a $35 target price.\u00a0<\/p>\n<p>Intel has challenges on a few fronts. It faces Nvidia\u2019s (NVDA) AI progress in the data-center market, wants to expand chip manufacturing to take on<br \/>\n        Taiwan Semiconductor Manufacturing<br \/>\n       (TSM), and has to protect the core central-processing unit business.<\/p>\n<p>\u201cWe remain optimistic on progress around the manufacturing roadmap, but there are still too many issues around [Intel\u2019s] data center position,\u201d wrote UBS analyst Timothy Arcuri.<\/p>\n<p>The analyst said that while Intel has touted a pipeline of more than $1 billion worth of potential orders for its own AI data-center hardware, investors might need to wait until 2025 for that to translate into meaningful revenue. That\u2019s the year of Intel\u2019s  planned launch for its Falcon Shores chip, a key next-generation graphics-processing unit expected to support high-performance computing and AI.\u00a0<\/p>\n<p>Arcuri kept a Neutral rating and $38 target price on Intel shares. <\/p>\n<p>Intel executives did reassure at least one bull, as Raymond James\u2019s Srini Pajjuri said the slower gross-margin expansion looks to be down to cyclical factors and backed the company to reach its long-term target.<\/p>\n<p>\u201cWe are leaving our estimates unchanged for now and are reiterating Outperform as we believe structural positives such as improving execution, moderating share losses, foundry progress, and LT [long-term] AI opportunity should outweigh temporary margin headwinds,\u201d Pajjuri wrote.<\/p>\n<p>Write to Adam Clark at adam.clark@barrons.com<\/p>\n<\/p><\/div>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.marketwatch.com\/articles\/intel-ai-chips-nvidia-stock-c81d7ce2?mod=markets\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Intel probably was hoping for a better result from its annual technology conference than a share drop. Analysts are still skeptical over the chip maker\u2019s ability to simultaneously take on Nvidia in artificial intelligence, defend its core market, and build up its semiconductor-manufacturing business.\u00a0 Intel (ticker: INTC) headlined its Innovation event this week with a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":14534,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[33],"tags":[],"class_list":{"0":"post-14533","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Intel Stock Drops. 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