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Bank of America Downgrades Intel (INTC) to Underperform After $80B Market Cap Surge

Intel Corporation (NASDAQ:INTC) is one of the AI Stocks in Focus on Wall StreetOn October 13, Bank of America downgraded the stock to “Underperform” from Neutral. It believes that the stock has run too far, too fast.

“We downgrade INTC to Underperform from Neutral while maintaining ests. and $34 PO.”

According to the firm, the $80B rise in Intel’s market cap already fully reflects its improved balance sheet and potential growth from (external) foundry.

However, Intel is yet to face several challenges, considering it doesn’t have a discernible AI portfolio/strategy and has an uncompetitive server CPU. Moreover, it is less flexible now compared to when it was in divesting loss-making manufacturing.

The company has struggled to regain market share from competitors and lost leadership in both the personal-computer and server central processing unit markets. This is mainly due to subpar chips compared to those from AMD and ARM.

A financial analyst speaking on a microphone and discussing the company’s future prospects in front of a trading board.

Speaking of its discernible artificial-intelligence strategy, the firm believes that Intel doesn’t have a so-called AI accelerator product, which is a piece of specialized hardware designed to speed up AI workloads.

While Intel has been trying to develop or acquire new AI accelerator assets, “but at this point the project seems to be either in a halt or no longer a focus area given the struggles in the existing CPU business as well.”

Overall, the firm expects INTC to be unprofitable by the end of calendar 2027.

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

While we acknowledge the risk and potential of INTC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than INTC and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 AI Stocks Every Investor Should Watch and 10 Trending AI Stocks on Wall Street

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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