We recently published a list of 12 AI Stocks on Analysts’ Radar. In this article, we are going to take a look at where Intel Corporation (NASDAQ:INTC) stands against other AI stocks on analysts’ radar.
The recently imposed US sanctions on chip use have angered China. In recent news, the country has stated that it may take legal action against any individual or organization who are found assisting or implementing U.S. measures that advise companies against using their advanced semiconductors.
According to the U.S. published guidance, companies risk violating export controls if found using Ascend AI chips from Shenzhen-based Huawei. In response, China’s commerce ministry said there could be “corresponding legal liabilities” against those involved in implementing U.S. measures and that it constitutes “discriminatory restrictive measures” against Chinese firms.
READ ALSO: 10 AI Stocks Investors Are Watching Today and 15 AI Stocks Surging on News and Analyst Ratings.
The sanctions are seemingly a new strategy adopted by the US to curb China’s progress in the AI arms race. The world is yet to watch the success of this strategy as opposed to the AI diffusion rule imposed earlier, which the world came to know had failed miserably after the arrival of DeepSeek.
Even Jensen Huang has deemed the AI diffusion rule to be a failure.
“All in all, the export control was a failure. The fundamental assumptions that led to the AI diffusion rule in the beginning, in the first place, has been proven to be fundamentally flawed.”
In fact, the sales block advanced AI chips to China, forcing companies to buy semiconductors from Chinese designers. It also pushed the country to invest aggressively in a robust supply chain that doesn’t rely on manufacturers outside the country.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A technician soldering components for a semiconductor board.
Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 83
Intel Corporation (NASDAQ:INTC) designs and sells computing hardware, semiconductor products, and AI-driven solutions for various industries. On May 20, Deutsche Bank analyst Ross Seymore resumed coverage on the stock with a “Hold” rating and a price target of $23. The firm noted that patience is still required from investors, warning that the company’s turnover may take some time.
This is because there have been quite a few challenges Intel is facing, including ongoing macroeconomic uncertainty and challenges such as high manufacturing costs and lagging leading-edge products. Seymore believes that these issues are expected to keep pressuring both revenue and profitability in the near term. The analyst did acknowledge Lip-Bu Tan’s entry as CEO, stating that it brings strong tech experience and a customer-focused strategy. Nevertheless, especially in Intel’s foundry business is still likely to be a long and difficult process
Seymore further added how fixing the product roadmap and regaining competitiveness in chip manufacturing could lead to a substantial financial upside. All in all, the bank is awaiting further information on the new CEO’s strategic plans or signs of progress before it reconsiders its position.
Overall, INTC ranks 7th on our list of AI stocks on analysts’ radar. While we acknowledge the potential of INTC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than INTC and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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