RBC Capital Initiates Intel at Sector Perform

RBC Capital analyst Srini Pajjuri initiated coverage of Intel (NASDAQ: INTC) with a Sector Perform rating and a price target of $50.00.

“Intel’s management has done a commendable job in recent months right-sizing the business, strengthening the balance sheet, and entering into a strategic agreement with NVDA.

PC/Server demand looks healthy and Intel’s product competitiveness is improving.

On the other hand, higher Memory prices and supply constraints could impact near term revenue/margin performance, and Intel lacks a Data Center AI narrative.

We believe gross margin upside and Foundry progress are key for continued outperformance. Both are dependent on manufacturing yields where our visibility is limited.

We initiate at Sector Perform as we await evidence of meaningful progress in these areas.”

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