10 Must-Watch AI Stocks for Investors

7. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 91

Intel Corporation (NASDAQ:INTC) is one of the 10 Must-Watch AI Stocks for Investors. On August 19, UBS analyst Timothy Arcuri reiterated a Neutral rating on the stock with a $25.00 price target. The firm noted how investors have been asking questions about how high Intel’s stock could go.

Arcuri believes that the downside risk is likely protected by its Tangible Book Value (TBV), which it estimates at $17-18 per share after the sale of Altera stake. This is, however, in the case that Intel can cut costs enough to reach sustainable cash flow breakeven.

The firm remains Neutral due to limited upside potential. However, an upside case may exist if the market puts a more material ‘valuation’ on all pieces of the business.

” We have remained Neutral though because we have seen upside limited by a lack of EPS power at the combined company level to sufficiently push the stock much higher than the mid $20 range – in part because INTC is going to have to give away (as non controlling interest) a significant portion of incremental OP dollars to Brookfield and Apollo for SCIP agreements in Ireland and Arizona. If, however, the market started to put a more material “valuation” on all of the piece of the business – including an independent valuation for Intel’s manufacturing assets based on how other global foundry comps are valued per installed wafer of capacity – we could see a case for an upside valuation of ~$40/share.”

Intel Corporation (NASDAQ:INTC) designs and sells computing hardware, semiconductor products, and AI-driven solutions for various industries.