Intel (INTC -4.72%) stock slumped 4.8% through 2:22 p.m. ET Thursday after the semiconductor stock received only lukewarm endorsement from investment bank Piper Sandler.
Image source: Intel.
What Piper said about Intel
Piper Sandler analyst David O’Connor initiated coverage of Intel stock this morning. The big shift in the artificial intelligence industry away from “training” AIs and asking them questions (“inference”) to using AI agents to accomplish tasks (“agentic AI”) is a tailwind for Intel, “driving demand for its CPU server products,” says O’Connor.
Weak CPU supply and strong CPU demand are likely to boost prices for Intel’s products in this environment, boosting Intel to “high-teens revenue CAGR to 2030E.” Nevertheless, the even stronger performance of Intel shares, which have more than quadrupled over the past year, limits further upside. For this reason, the analyst gives Intel stock only a neutral rating and predicts Intel will gain less than 10% over the next year, hitting perhaps $110 per share, as StreetInsider.com reports.
Today’s Change
(-4.72%) $-5.02
Current Price
$101.22
Key Data Points
Market Cap
Day’s Range
$99.34 – $103.23
52wk Range
$24.05 – $142.35
Volume
67M
Avg Vol
113M
Gross Margin
39.05%
What it means for Intel stock
That’s not enough to get investors excited. To the contrary, worries that 10% may be the most Intel investors can expect to gain appear to be discouraging investors from owning Intel today.
And here’s another thing to worry about:
O’Connor opines that about 45% of Intel’s current market capitalization assumes that the company’s foundry unit will gain a whopping 15 points of market share in CPUs globally. That’s possible — but far from guaranteed. Should Intel’s gains prove more muted than that, much of the last year’s gains could evaporate.
Caveat investor.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel. The Motley Fool has a disclosure policy.
