‘Significant Growth Opportunity,' Says Investor About Intel Stock

Business Insider

25-04-2025

The market will be closely watching Intel (NASDAQ:INTC) tomorrow as new CEO Lip-Bu Tan leads his first earnings call since taking the reigns at the embattled company.
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The recently-installed head has pledged 'to restore Intel's position as a world-class products company,' and he certainly appears to be taking action quickly. News has recently surfaced that Intel plans to strip away some 20,000 jobs as part of company efforts to reclaim its place among the Silicon Valley elite.
Though Tan brings both credibility and eagerness to his role, expectations are somewhat muted prior to tomorrow's call. Indeed, multiple Wall Street analysts have lowered their price targets in recent days. Part of this is of course due to the overall geopolitical uncertainties, especially trade and tariff worries that have sent shivers throughout the markets.
This is also partly due to Intel's past underperformance. The company's Q4 2024 revenues were down -7.4% year-over-year, while its Q1 2025 guidance was weaker than expected.
All told, INTC's share price has lost some 40% of its value over the past twelve months – though its year-to-date losses of 2% are better than most.
Looking into the mist, investor Bohdan Kucheriavyi spots a good old-fashioned comeback story.
'Intel has significant growth opportunities due to the rising demand for AI chips and its strategic advantage in producing chips in its own foundries,' says the 5-star investor.
Kucheriavyi notes that the AI PC market is shooting up at a CAGR of 30%, in line with Intel's goal of delivering more than 100 million AI PCs by the end of the year. The investor also points out that the Panther Lake chip will be manufactured on Intel's 18A process node, which Kucheriavyi calls a 'major milestone' for the company.
When it comes to the potential tariff disruptions, the investor is not too concerned. Kucheriavyi posits that the company's U.S. presence should shield it from the harshest impacts. The investor also argues that INTC could even see a benefit from the imposition of trade barriers on its foreign competition.
And, the recently dropping share price has made INTC even more enticing for the investor. In other words, a 'massive comeback' could be on the horizon.
'At the current price, the downside is likely limited, while the upside is significant,' concludes Kucheriavyi, who rates INTC a Buy. (To watch Kucheriavyi's track record, click here)
The consensus on Wall Street is significantly more mellow, with 26 Hold ratings easily overshadowing 1 Buy and 4 Sell ratings. INTC thus holds a consensus Hold (i.e. Neutral) rating. INTC's 12-month average price target has an upside of ~15%. (See INTC stock forecast)
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