Intel Corporation’s (NASDAQ:INTC) shares surged last week as reports emerged of a potential strategic acquisition by an unnamed company. This comes on the heels of a tough 12-month period for Intel, which has seen its shares decline over 50% since December.
In response to declining revenue and market skepticism, Intel’s Board of Directors made a significant move by firing CEO Pat Gelsinger in December. However, this change hasn’t led to a surge in investor confidence, as the market remains uncertain about the company’s direction.
One top investor, known for their positive outlook on Intel, believes that low expectations could actually work in the company’s favor. Quad 7 Capital expects significant growth from Intel’s data center and AI investments, with quarter-over-quarter increases expected in these areas.
The investor predicts substantial improvement for Intel starting after Q1 2025, including year-over-year revenue growth, cash flow growth, and earnings growth. Despite low expectations from the market, Quad 7 believes Intel will surpass them, making it a Buy-rated stock.
Currently, Wall Street has assigned a neutral rating to Intel, with only one Buy recommendation and a 12-month average price target of $24.42, indicating potential for mid-teens gains.
Source: https://www.tipranks.com/news/the-bar-is-low-says-top-investor-about-intel-stock