Intel (NASDAQ:INTC) had a great day in the stock market, with shares rising more than 5% on Monday afternoon trading. A report from analysts at Melius Research suggested that Intel, which has been lagging in artificial intelligence (AI) compared to competitors like Nvidia (NASDAQ:NVDA), could see a resurgence in the second half of the year. This turnaround has happened in the past, where underdogs like Intel might struggle initially but bounce back stronger later on.
On the other hand, there were some concerns about Advanced Micro Devices (AMD), Intel’s competitor. While AMD’s Ryzen 9 9900X chip showed a significant speed improvement over Intel’s Core i9-14900K, AMD’s key advantage in the market was found to be declining. With more competition entering the market and Intel improving its capacities, AMD may lose its edge and struggle to regain lost ground.
Analysts on Wall Street have a consensus rating of Hold on INTC stock, with three Buys, 25 Holds, and three Sells assigned over the past three months. Despite a 4.6% increase in its share price over the past year, the average target price for INTC is $38.02 per share, implying a potential upside of 12.45%.
In summary, Intel had a strong day in the stock market fueled by reports of a possible resurgence in the AI sector. While facing stiff competition from AMD, Intel has the potential to stage a comeback in the second half of the year. Analysts remain cautiously optimistic about Intel’s prospects, with a consensus Hold rating and a modest upside potential in the stock price. Investors will be watching closely to see if Intel can capitalize on its strengths and overcome its weaknesses to stay competitive in the chip market.
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