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UBS Reiterates Neutral on Intel (INTC), Sets $25 Price Target

Intel Corporation (NASDAQ:INTC) is one of the 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.

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 In The Spotlight For Investors and 10 Trending AI Stocks on Wall Street

Disclosure: None.

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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.

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  • 140 Metas
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  • 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.

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