Intel stock (NASDAQ: INTC) has been on a steady downward trajectory since late 2023.
Despite a once-dominant position, a sluggish pace when it comes to adopting new manufacturing processes led the company to essentially miss out on the artificial intelligence (AI) boom.
Back in early December, the semiconductor giant announced that Chief Executive Officer (CEO) Pat Gelsinger would be stepping down. Markets reacted positively to the news, and David Zinsner, CFO, and Michelle Johnston Holthaus were named as interim co-CEOs.
Picks for you
In the meantime, numerous reports surfaced that suggested TSM and Broadcom were considering acquiring parts of the company.
On March 12, the business announced that industry veteran and board member Lip-Bu Tan would take over as CEO. Whereas the stock opened at $20.99 on the day of the announcement, by press time on March 13, prices had surged by 14.10%, up to $23.95. This latest development has brought the year-to-date (YTD) returns of Intel stock up to 19.43%.
It’s clear that markets reacted positively to the personnel change — but how does Wall Street feel about Intel stock?
Wall Street analysts mostly consider Intel stock a ‘Hold’
At present, 31 Wall Street equity researchers track Intel stock and issue ratings for it. INTC is a consensus ‘Hold’ — with 1 ‘Buy’ rating, a whopping 26 ‘Hold’ ratings, and 4 ‘Sell’ ratings.
There’s also quite a bit of discrepancy when it comes to the price targets that analysts have set. The Street-high price target is $34 — whereas the lowest target currently issued is just $18. With that being said, the average 12-month price forecast for Intel stock currently sits at $23. This figure implies a 3.86% downside from current prices.
Lastly, readers should keep in mind that as the price of INTC shares has seen a sharp increase, there’s a strong likelihood that we will see analysts revisiting their price targets in the coming weeks. Lip-Bu Tan has a history of recognizing trends in the semiconductor industry ahead of the curve — and his appointment may well signal the beginning of a shift in Intel’s fortunes.
Featured image via Shutterstock
