I first pounded the table on Intel in my post on September 4, 2023 and have literally been pounding it every week since:
“The dominant microprocessor company of the 1980s and the 1990s (recall the Intel Inside marketing campaign) is now the laggard (market-cap of just $153 Billion) in the new era of Artificial intelligence dominated by Nvidia (Symbol: NVDA) with a market-cap of $1,200 Billion.
I believe this 8x price multiple cannot be sustained and should come down in the not-too-distant future.”
Looks like brokerage houses are starting to turn bullish on Intel:
Today’s news in Reuters by
Intel jumps to 17-month high after Mizuho analyst upgrade
By Chibuike Oguh
NEW YORK (Reuters) -Shares of Intel rose by nearly 7% on Thursday, hitting their highest level in 17 months, after Mizuho Securities upgraded its rating on the semiconductor maker’s stock to “buy,” citing prospects of increased revenue from forthcoming chips and new production facilities.
Intel is set to unveil a new data center and artificial intelligence chips in 2024, expected to be one of its most “prolific product launch in years”, as well as open new chip-making facilities called foundries, Mizuho analysts, led by automotive and semiconductor specialist Vijay Rakesh, said in an investor note on Wednesday.
Mizuho upgraded Intel’s stock to “buy” from “neutral” and raised its price target on the shares to $50 from $37.
Intel shares rose as high as $43.39, the highest since June 2022, and closed up 6.7% to $43.35 on Thursday. The stock has now gained 64% year-to-date.
“We believe (Intel) is lining up significant new server product launches and foundry customer announcements in the next six months,” the analysts wrote.
The median price target of 44 analysts covering Intel is $38, up from $35.50 in October, and the consensus recommendation on the stock is “hold”, according to LSEG data.
Intel competes for market share with other prominent chipmakers including Nvidia, Broadcom Inc, Advanced Micro Devices, and Samsung Electronics.