Shares of Intel (NASDAQ: INTC) tumbled to kick off the brand new yr, falling as a lot as 5.6%. As of three:35 p.m. ET, the inventory was down 5.19%.
A part of what dragged the semiconductor firm down was the inventory market’s broader decline to start out the yr. A Wall Avenue analyst additionally added gasoline to the fireplace. Regardless of issuing a better worth goal, the analyst does not view Intel as one in every of a choose group of “enticing” chip shares.
Much less draw back for Intel
Stifel analyst Tore Svanberg maintained a maintain score on Intel, although he elevated his worth goal to $45 from $38. Whereas that may seem to be excellent news at first look, it suggests an extra draw back of 10% in comparison with Friday’s closing worth.
The analyst laid out standards for the semiconductor shares he views as “enticing” heading into 2024. Svanberg believes this “preferrred combine” consists of shares down from their current highs, with robust steadiness sheets, and properly located to learn from the continuing synthetic intelligence (AI) revolution — however Intel did not make the reduce.
The concentrate on AI
So as to add insult to harm, the analyst was clear about his high choose amongst AI shares — citing Nvidia as the highest canine. Svanberg went as far as to name Nvidia his “greatest concept” for AI and accelerated computing. He went additional, saying Nvidia “presents a compelling alternative forward of the subsequent part of the corporate’s AI cycle, software program and providers.”
Not everybody agrees along with his resolution to snub Intel. Late final week, Argus analyst Jim Kelleher maintained a purchase score on Intel shares and raised his worth goal to $60 from $42. For buyers, this implies a possible upside of 19% in comparison with Friday’s closing worth. Kelleher cited Intel’s place within the knowledge middle and area of interest markets, such because the Web of Issues (IoT) and functions acceleration, as causes to purchase.
Regardless of hovering in 2023, Intel inventory has been basically flat over the previous 5 years. The inventory stays one thing of a blended bag, and there are, in my view, much better methods to play the AI revolution.
Must you make investments $1,000 in Intel proper now?
Before you purchase inventory in Intel, take into account this:
The Motley Idiot Inventory Advisor analyst workforce simply recognized what they imagine are the 10 greatest shares for buyers to purchase now… and Intel wasn’t one in every of them. The ten shares that made the reduce may produce monster returns within the coming years.
Inventory Advisor supplies buyers with an easy-to-follow blueprint for fulfillment, together with steering on constructing a portfolio, common updates from analysts, and two new inventory picks every month. The Inventory Advisor service has greater than tripled the return of S&P 500 since 2002*.
See the ten shares
*Inventory Advisor returns as of December 18, 2023
Danny Vena has positions in Nvidia. The Motley Idiot has positions in and recommends Nvidia. The Motley Idiot recommends Intel and recommends the next choices: lengthy January 2023 $57.50 calls on Intel, lengthy January 2025 $45 calls on Intel, and quick February 2024 $47 calls on Intel. The Motley Idiot has a disclosure coverage.
Why Intel Inventory Slumped on Tuesday was initially revealed by The Motley Idiot