Truist Securities Reiterates Hold on Intel

Truist Securities analyst William Stein reiterated a Hold rating on Intel (NASDAQ: INTC).

“We have a Hold rating on INTC.

After a series of stumbles, INTC lost its leadership positions in semiconductor manufacturing process technology to TSMC (TSM, NR) and CPU performance to Advanced Micro Devices (AMD, Buy).

More recently the company established a clear objective to regain process and product leadership.

Demand is better, execution is improving, foundry datapoints sound incrementally better, and the AI strategy is coming into clearer view.

Still, to view INTC optimistically here is challenging given the recent stock run, and the high number of moving parts and wide potential outcomes.

We see a constructive view on INTC as an explicit opinion that INTC will be successful in its technology comeback and foundry aspirations.

We lack the conviction in this area, so a Hold rating is warranted, in our view.

Considering the improvements in INTC’s tone around the foundry business, we see the CY27 EPS as an insufficient basis to drive a PT.

Instead, we consider two scenarios for CY29: one with foundry breakeven that suggests EPS would be $3.07, and one with foundry continuing to lag, that suggests EPS would be $1.39.

Assuming approximately equal likelihood to these outcomes, we use an average EPS of $2.23, apply a 45x P/E (inline with Datacenter peers) and discount it back two years to derive our $81 PT.”

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