Why Analysts Expect Intel (INTC) Stock to Rise on Headlines, Not Fundamentals

Intel Corporation (NASDAQ:INTC) is one of the Top AI Stocks in the Spotlight on Wall Street. On September 26, Lynx Equity shared an analysis on Intel Corporation, stating that it expects “the stock to drift upwards powered by headlines to perhaps the $40-range.”

Discussing the recent media reports regarding Intel’s CEO approaching Apple and TSMC, the firm expressed its skepticism and stated that there is “little reason for Apple to agree to invest in Intel, from a strategic sense. Even less so for TSM.” However, it strongly supports NVIDIA’s investment in Intel.

The firm’s analysis suggests a potential server product ramp in 2027 based on Intel’s custom x86 CPU integration into NVIDIA’s AI racks. Lynx said that after this integration, “Intel’s NVLink-enabled x86 CPUs, on a stand-alone basis, could have interesting applications in traditional racks too.”

“After having jumped ~25% on the NVDA announcement and another ~15% on the AAPL headline, in the near term, we expect INTC stock to continue heading upwards, not as much due to fundamental reasons, but because the Intel CEO has managed to keep the company in the news. After ignoring the stock for over a year, institutional investors may be forced to take a view. On a fundamental basis, there may be a little bit of thaw in the permafrost as Intel’s core business sees modest upside. In his earnings presentation, Micron CEO raised his expectations for traditional server growth this year. Also, China’s subsidy program is helping boost client PC sales. Intel’s core portfolio of products may drive modest upside to revenue guidance. However, margins in the back-half of the year can be expected to be under pressure as Panther Lake ramps, the despite Raptor Lake reported to have raised pricing. Net/net, we expect the stock to drift upwards powered by headlines to perhaps the $40-range and then come under pressure as the earnings event draws closer.”

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

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