Stifel Reiterates Hold Rating on Intel (INTC), 'No change to investment thesis'
Stifel analyst Ruben Roy reiterated a Hold rating and $25.00 price target on Intel (NASDAQ: INTC).
The analyst comments "INTC announces retirement of CEO Pat Gelsinger. Prior to market open, INTC announced that CEO Pat Gelsinger retired from the company and stepped down from the Board effective December 1st. David Zinsner (EVP and CFO) and Michelle Johnston Holthaus (previously EVP and GM of the Client Computing Group), were named Interim Co-Chief Executive Officers, with Ms. Johnston Holthaus also being appointed to the newly created (and permanent) position of CEO of Intel Products, which covers the company's core product segments; Client Computing Group (CCG), Data Center and AI Group (DCAI) and Network and Edge Group (NEX). The company's Foundry leadership structure was unchanged. INTC's Board has formed a search committee to find a permanent CEO. No change to investment thesis. In its press release, INTC noted that while the company has made significant progress in regaining manufacturing competitiveness and building out its foundry capabilities, there remains much more work to do. As we noted in our post earnings note in late October, INTC's longer-term strategy continues to evolve and execution on that strategy remains ahead, importantly, with 18A proof points remaining critical as the company moves through 2025. While we think that a fresh set of eyes likely makes sense at this point, we expect that additional modifications to the company's strategy, which could include yet another change in direction for the Foundry business, could further delay the company's ability to right the direction of its technology roadmap toward the rapidly evolving AI TAM opportunity. We note, though, that the recent finalization of the U.S. DoC direct funding award through the CHIPS and Science Act does limit some potential options, i.e. restrictions on certain change of control transactions including a requirement to retain majority ownership of Intel Foundry."
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Shares of Intel closed at $24.05 yesterday.