Intel’s CEO, Pat Gelsinger, has stepped down from his position, prompting analysts to reset their forecasts for the company’s stock. The departure comes as Intel faces increased competition and made several missteps, including passing on the chance to develop the chip for Apple’s iPhone and missing out on a potential stake in OpenAI.
The company’s foundry business has been a drag on its performance, leading some analysts to suggest that it may need to separate its products and foundry arms. However, this move would require clearing several hurdles, including maintaining a significant stake in the foundry business.
Despite the challenges ahead, some analysts believe that a fresh set of eyes at the helm could provide a near-term boost to the stock. Analysts will be watching Intel’s fourth-quarter performance on January 23, which is expected to report adjusted earnings of $0.12 per share and revenue of $13.83 billion.
Analysts at Bank of America Securities, Oppenheimer, and Stifel have issued research notes following Gelsinger’s departure, highlighting the potential for changes in Intel’s strategy, including modifications to its foundry business. However, they also note that significant challenges lie ahead for the company’s successor.
Source: https://finance.yahoo.com/news/analysts-reset-intel-stock-forecasts-004700750.html