‘Give This Underdog Some Love,' Says Top Investor About Intel Stock

Globe and Mail

6 days ago

The narrative around Intel (NASDAQ:INTC) during the first part of this decade has largely been shaped by missed opportunity. Unlike some of its competitors, the Silicon Valley pioneer failed to take advantage of the AI wave – and its share price has lost almost 70% of its value over the last five years.
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Intel clearly understood that it needed to make a course correction and the board brought in Lip-Bu Tan to head the company. Tan has outlined an ambitious vision, seeking to make Intel an 'engineering-focused company.'
He has also stated that one of his first actions as CEO was to learn the ins-and-outs of Intel's progress with its 18A technology. Notably, Tan has expressed his belief that Intel has a 'vitally important role' in supporting advanced semiconductor production.
One top investor known by the pseudonym Tech Stock Pros agrees that the 18A has the potential to propel Intel skyward.
'Intel's 18A will carry it to new heights, and the more negative the market gets on this name, the more attractive it is to us,' asserts the 5-star investor, who sits in the top 3% of TipRanks' stock pros.
The company will enjoy two major benefits if it is able to successfully produce 18A, explains Tech Stock Pros. The first will be in the CPU market, as the technology will give Intel an advantage over key competitor Advanced Micro Devices – which has been clawing away market share from Intel in this segment.
The second benefit will be to demonstrate Intel's ability to serve as a 'reliable foundry player.' Right now, there is not much external demand for Intel's high-end nodes, notes Tech Stock Pros, who adds that the market does not seem to think Intel will attract customers for its foundry business.
Ironically, Tech Stock Pros thinks these doubts can be a plus for investors.
'Low expectations make for more dramatic stock price reactions when better-than-feared news breaks, and we think that could be the case with 18A's successful ramp in Q4 and early 1H26,' adds Tech Stock Pros.
The 18A launch is therefore quite a good reason to shower this underdog with some love, notes the investor.
'Intel could be back at the $40s level after 18A is successfully out; it'll expand margins, enable share regain on the PC Client front, and put the company on the map as an advanced foundry player,' concludes Tech Stock Pros, who rates INTC a Buy. (To watch Tech Stock Pros' track record, click here)
Wall Street, however, is firmly on the fence on this one. With 26 Hold ratings – to go along with 1 Buy and 4 Sells – INTC has a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $21.29 has an upside of ~6%. (See INTC stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.