1 min read
After a sweeping tech stock sell-off last week, Wall Street is on the hunt for bargains.
And JPMorgan (JPM) may have found one in chip giant Intel (INTC), with the stock off about 36% from the June highs. Analyst Harlan Sur upgraded his rating on Intel to Neutral from Underweight on Monday.
Intel stock rose 4% in premarket trading.
89.85 -5.52 (-5.79%)
At close: October 16 at 4:00:01 PM EDT
93.61 +3.76 (+4.18%)
Pre-Market: 8:22:13 AM EDT
Here are several of Sur’s thoughts that stood out:
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CEO is driving fundamental change: “More importantly, since Lip Bu Tan’s appointment to CEO, we believe the team’s execution and competitiveness in their core client/datacenter compute market has improved, the team’s execution on next-gen manufacturing has significantly improved (yields, manufacturability, foundry process/design rule compatibility, advanced packaging) and the team has several initiatives (ASICs) which exploit INTC’s strong IP portfolio, SOC design capabilities, and leading edge internal manufacturing capabilities.”
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Estimates could be poised for lift-off: “Despite near-term concerns on AI infrastructure spending sustainability, we believe increasing agentic AI workloads (CPU intensive) and a very tight supply chain for leading edge silicon should drive continued positive EPS revisions in the upcoming earnings season and through CY27 (our CY28 EPS estimates are ~15% above consensus).”
Brian Sozzi is Yahoo Finance’s Executive Editor, host of the Sozzi Unleashed morning show and the Power Players with Brian Sozzi podcast, and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
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