Mizuho lowers Intel stock price target amid product roadmap outlook

On Friday, Mizuho maintained a buy rating on Intel Corporation (NASDAQ: ) but lowered its stock price target to $45.00 from $55.00. The changes come amid Intel's recent comments on its financial outlook and product development.

The company expects the PC and data center (DC) markets to be stable and slightly higher in the second quarter. However, greater improvements are expected in the second half of the year, likely driven by the PC refresh cycle, Altera/NEX growth, and the resurgence of DC computing.

Intel reported that its server share remained stable in the first quarter of 2024. The developments are part of Intel's strategy to enhance its server products and compete more effectively in high-performance computing.

Intel said that the recent focus of investor attention may be the growth of Granite Rapids and Falcon Shores AI GPUs. These products are expected to play an important role in Intel's growth in the artificial intelligence and GPU markets. At the same time, the company views its foundry services (IFS) and other long-term plans as a long-term narrative.

Despite lowering its estimates and price target, Mizuho remains optimistic about Intel's prospects, reflecting confidence in the company's ability to respond to current market conditions and capitalize on future growth opportunities. The new price target of $45.00 reflects a more conservative valuation based on the latest forecasts and market dynamics.

3rd party advertising. Not an offer or recommendation by Investing.com.See disclosures here or
Remove ads

Investment Professional Insights

InvestingPro's current live data provides investors with additional context based on Mizuho's recent assessment of Intel Corporation (NASDAQ: INTC ). Intel's market value is as high as US$149.46 billion, highlighting its important position in the industry. Despite recent dismal performance, with a total stock price return of -16.38% in a single month, Intel still maintains a dividend yield of 1.42%, continuing its 33-year dividend payment history. This commitment to shareholder returns is noteworthy, especially given the current economic climate.

From an operating perspective, Intel's gross margin for the trailing 12 months ending in Q1 2024 was 41.49%, which is a healthy number and shows that the company retains the ability to generate profits from revenue. InvestingPro Tips indicates that Intel expects net profit to grow this year and remains a significant player in the semiconductor and semiconductor equipment industry. Additionally, the Relative Strength Index (RSI) shows that Intel's stock is currently in oversold territory, which may be of interest to value investors looking for a potential entry point.

For those considering taking a deeper look at Intel's financial metrics and future prospects, there are 8 additional InvestingPro tips available. These insights can be invaluable in making informed investment decisions.To access these tips and more detailed analysis, visit https://www.investing.com/pro/INTC and use the coupon code to enjoy exclusive offers PRONEWS24 Enjoy an additional 10% discount on yearly or annual Pro and Pro+ subscriptions.

This article was generated with the support of artificial intelligence and reviewed by an editor. For more information, please see our terms and conditions.

3rd party advertising. Not an offer or recommendation by Investing.com.See disclosures here or
Remove ads

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *