Intel Stock Has Fallen Over 58% In 1 Year, But Citi Maintains 'Neutral' Rating On Expected Replacement Of Pat Gelsinger In A 'Couple Of Months'

Intel Corp. INTC discussed its priorities for 2025 with Citi Research analyst Christopher Danely, which includes the company’s AI ambitions, solving CPU manufacturing issues, and the appointment of a new CEO.

What Happened: David Zinsner and Michelle Johnston Holthaus were named as the interim co-CEOs of Intel on Dec. 2, 2024, while the company searched for a permanent replacement. Former CEO Pat Gelsinger retired and stepped down from the board after over 40 years with the company.

Citi Research, in its research note dated Jan. 9, 2025, highlighted how it plans to work on the most pressing matters in the new year. This includes fixing the product roadmap, fixing CPU manufacturing, and establishing a meaningful foothold in the AI market.

The note also stated that the company will streamline its operations with a goal to gain market share in the CPU market in 2025. Citi reiterated its beliefs in Intel’s priorities.

Talking about the search for a new CEO, the research note added “We believe Intel could announce a new CEO within a couple of months and reiterate our Neutral rating.” The price target remained unchanged at $22 per share, assigned on Nov. 26, 2024.

See Also: Intel Stock Is Where It Was 27 Years Ago: How The World’s Leading Chipmaker Lost The Plot, Thrice

Why It Matters: Intel’s market capitalization has significantly lagged behind its competitors.

While Intel’s value stands at $85.7 billion, Qualcomm Inc.’s QCOM market cap stands at $176.7 billion. Advanced Micro Devices Inc. AMD, a key rival, boasts a market capitalization that is more than double of Intel’s at $197.7 billion.

Nvidia Corp. NVDA towers above them all with a staggering market capitalization of $3.43 trillion, highlighting the significant gap in valuation within the semiconductor industry.

Additionally, Intel’s 13th and 14th-generation processors were plagued by persistent performance issues. In August 2024, the chip maker announced plans to cut 15% of its workforce, or about 15,000 jobs, despite receiving $8.5 billion in grants from the U.S. government.

Price Action: Intel’s stock was down 0.4% in premarket on Friday. The stock has declined by 42.99% over the last six months and by 58.12% over a year. Whereas, the Nasdaq 100 has outperformed with gains of 2.45% in the last six months and 26.13% over a year.

About 31 analysts tracked by Benzinga have a consensus rating of “sell” with an average target price of $30.23 on Intel stock. BofA Securities, Northland Capital Markets, and Mizuho are among the three most recent analyst ratings, and their average price target stands at $24, implying a 20.85% upside.

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