Summary:
- Intel is shifting its foundry unit strategy to adopt the 14A process, enhancing competition with TSMC.
- Analysts show a "Hold" consensus with an average price target, suggesting marginal movement from current levels.
- GuruFocus projects a potential 6.8% upside based on its GF Value estimation.
Intel Corporation (NASDAQ: INTC) is undertaking a significant shift in its technology strategy by transitioning its foundry unit from the existing 18A technology to the advanced 14A process. This move is aimed at bolstering its competitive stance against Taiwan Semiconductor Manufacturing Company (TSMC). Although this strategic change is promising for Intel's future capabilities, Morgan Stanley observes that the immediate economic impact may be limited, emphasizing that profitability is not heavily reliant on external clientele at this juncture.
Wall Street Analysts Forecast
According to projections by 32 analysts, Intel Corp’s stock price is expected to stabilize around $21.24 over the next year. The forecasts range from a high of $28.30 to a low of $14.00, with an average target presenting a potential downside of 4.94% from the current trading price of $22.34. Investors interested in a deeper dive can visit the Intel Corp (INTC, Financial) Forecast page for more comprehensive data.
In terms of brokerage sentiment, Intel maintains a "Hold" status, as concluded from the average recommendation rating of 3.1 provided by 46 brokerage firms. On the standard rating scale, this suggests a cautious stance with 1 representing a "Strong Buy" and 5 indicating a "Sell."
Moving on to GuruFocus's valuation metrics, the estimated GF Value for Intel Corp is projected to be $23.86 in a year's time. This represents a potential upside of 6.8% from the current share price of $22.34. The GF Value is determined by examining historical trading multiples, past financial growth, and future performance expectations. Further insights and analysis can be accessed on the Intel Corp (INTC, Financial) Summary page.
