Intel Corp. has experienced a remarkable surge this year, with its shares soaring by 54%. However, according to Mizuho analyst Vijay Rakesh, there are numerous catalysts that may push the stock even higher.
Rakesh recently upgraded Intel to a buy rating from neutral, citing exciting opportunities associated with new server product launches and potential announcements regarding the company’s foundry business.
The year 2024 holds significant potential for Intel, as it could prove to be one of the most prosperous years in terms of product launches. This is particularly noteworthy as the past few years have been relatively subdued. With the introduction of Sierra Forest, Intel aims to offer a highly competitive product in the data-center and enterprise-storage server markets. Additionally, Granite Rapids presents new opportunities for the company.
Moreover, Intel stands to benefit from an increasingly favorable landscape for personal computers. Rakesh believes that the company could expand its market share in this sector.
Furthermore, the realm of artificial intelligence provides Intel with yet another opportunity for growth. Rakesh suggests that Intel’s upcoming high-margin AI product, Gaudi2/3 (expected to be released next year), could propel the company’s market share. According to Rakesh, this move positions Intel as an under-the-radar AI player, potentially gaining an edge over Nvidia Corp.
Rakesh emphasizes the importance of updates regarding Intel’s foundry business. The analyst anticipates that Intel could bridge the long-standing manufacturing technology gap with its peers and foundries.
In addition, Intel has expressed its intention to eventually spin off its programmable solutions group as a means of unlocking shareholder value. Rakesh views this potential move as favorable for investors.
Considering these factors, Rakesh has raised his price target for Intel from $37 to $50 in his recent report.
It’s an exciting time for Intel, with optimistic prospects and the potential to capitalize on a variety of opportunities. Investors are eagerly anticipating the company’s continued advancements and strategic moves.
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