AI is a contender in the race, according to the Melius Research analyst, who wrote that investors should be paying close attention to the next steps in the computer manufacturing and technology maker space.
According to Melius Research analyst Ben Reitzes
(ticker: INTC) as a buy with a $46 price target, which suggests a 21% upside from the stock’s close on Monday.
When investors think of AI, they think
Advanced Micro Devices
(AMD) as the top two performers, Reitzes said. But Intel’s AI chip, Gaudi, has been making some noise lately and is one of the reasons for the rally in Reitzes’ stock.
Reitzes says Wall Street hasn’t yet priced in what this AI chip could do for the company’s top line over the next few years.
“While Intel needs to continue to make inroads into software, the potential for hundreds of millions in Gowdy revenue is not in street models,” Reitzes wrote in a research note Monday.
In the company’s latest earnings call in July, Chief Executive Patrick Gelsinger said Gowdy is one of Intel’s “strong, open options in the AI market that competes against the competition on both performance and price.”
Reitzes isn’t the only analyst confident in Intel’s AI future. Raymond James analyst Srini Pajuri reiterated her outperform rating and $42 price target on Intel on Thursday, writing in a note that “while Intel may not get much credit for its AI efforts in the near term, we believe the company is well positioned.”
Shares of Intel fell 1.2% to $37.53 on Tuesday. The stock is up 42% in 2023.
Write to Angela Palumbo at email@example.com