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Intel Corp (Nasdaq: INTC) is down well over 35% versus its year-to-date high but a Goldman Sachs analyst still doesn’t see it as a bargain.
Intel stock has limited upside from here
Toshiya Hari reiterated his “sell” rating on the chipmaker this morning as “AI prioritisation continued to weigh on traditional server demand”.
He lowered his price objective on INTC as well to $34 that no longer suggests a meaningful upside from here.
Hari’s research note arrives a day after the semiconductor giant based out of Santa Clara, California came in shy of revenue estimates for its first quarter and issued disappointing guidance for the future.
Note that Intel stock does, however, pay a dividend yield of 1.60% at writing.
Technicals are negative for INTC as well
In March, Intel secured an $8.5 billion grant from the U.S. government under its Chips and Science Act as Invezz reported here.
Still, Toshiya Hari is waiting for signs of progress in its external foundry strategy and stability in its market share in data centre.
Other than Goldman Sachs, several other investment firms including Barclays and the Bank of America also trimmed their respective price targets on $INTC on Friday.
Intel has a killer feature in their latest AI accelerator chip, (Gaudi 3) that I don't see anyone talking about.
— LaurieWired (@lauriewired) April 22, 2024
Ethernet-based high-bandwidth interconnects. No fancy NVLink or Infiniband needed, just 24 fat, 200GbE ethernet pipes.
This could be really interesting as an… pic.twitter.com/74P4S5TsSf
It is worth mentioning here that Intel stock is not attractive in terms of technicals as well. It has dropped below the 61.8% Fibonacci Retracement Level and is about to form a bearish death cross pattern as well (read more).
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