Intel stock rises as market suffers losses

Intel stock rises as market suffers losses

Many technology stocks sank in the slight gloom of the stock market on Monday. One exception was the mainstay of chip manufacturing, Intel (NASDAQ:INTC). The company’s stock price saw an increase of just under 1%, thanks to a modest but still positive adjustment to an analyst’s price target. In comparison, uninspired people S&P500 the index fell 0.2% on the day.

A raised price objective, but no recommendation

Before the market opens, UBS“Timothy Arcuri made the change. He added $4 per share to his Intel price target for a new level of $50. That doesn’t put him in the veteran bull camp technology company, However; in doing so, he left his neutral recommendation on the stock unchanged.

Arcuri’s adjustment is due to a change in financial reporting that Intel recently announced that affects its Intel Foundry manufacturing business. This will better reflect what the company considers a “foundry-style relationship” between the unit and Intel Products – the products it sells.

The analyst wrote that by analyzing the numbers under this new regime, “we take a slightly more positive view of Intel Foundry’s revenue and margin potential.”

Concerns about competitiveness

But the key word is “slightly”. Arcuri said he maintains his neutral stance on Intel due to its “declining” positions in crucial growth segments. He pointed to artificial intelligence (AI) as one of the areas where the company is lagging.

Although UBS’s prognosticator is lukewarm on Intel’s prospects, its peers mostly expect decent growth in the near future. On average, according to data compiled by Yahoo! Finances, they anticipate this year an annual increase of 14% in turnover, accompanied by a strong increase of 28% in net profit per share. These figures are expected to reach 12% and 67% in 2025.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short May 2024 $47 calls on Intel. The Motley Fool has a disclosure policy.

Why Intel Stock Soared While the Market Fell Today was originally published by The Motley Fool

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