10 Trending AI Stocks on Wall Street

5. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 82

Intel Corporation (NASDAQ:INTC) is one of the 10 Trending AI Stocks on Wall Street. On October 8, HSBC analyst Frank Lee downgraded the stock from Hold to Reduce and raised its price target to $24.00 (from $21.25).

The firm believes that Intel’s rally since August is largely because of short-term investment deals and not because its performance has improved in the long run.

The company’s turnaround is dependent on fixing its foundry operations. However, it continues to face execution failures.

“A TSMC technology deal – which we think is the only one that matters – is unlikely despite potential for future investments,” analysts at HSBC noted.

The company has recently announced three major deals that drove a significant stock re-rating”

“1. SoftBank investing USD 2 billion;

1. The U.S. administration investing USD 11.1 billion for a 9.9% equity stake; and
2. NVIDIA investing USD 5 billion for an approximately 4% stake.

Although these deals were executed at a discount to market price, Intel’s stock has risen 55% since the first announcement in August. We expect additional deal announcements that could drive further short-term re-rating. However, we maintain that Intel’s own fabrication (fab) execution remains the key to achieving a sustainable turnaround.

Given this, we believe the recent re-rating is overdone and are downgrading Intel to Reduce from Hold.”

Intel Corporation (NASDAQ:INTC) designs, manufactures, and sells computer products and technologies, delivering data storage, computer, networking, and communications platforms.