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HSBC on Monday trimmed its price target on Intel stock to $37 from $44 after cutting its estimates on Intel earnings per show growth of 4% to $1.24 in fiscal 2024, and 12% to $2.14 in fiscal 2025, reflecting “Intel’s weaker Intel Foundry and datacentre business.”
Earlier this month, Intel, which is set to report quarterly results on Apr. 25, said losses at Intel Foundry, its chipmaking business division, widened to $7 billion this year from $5.2B in 2023.
Intel isn’t expected to unveil negative surprises on guidance for fiscal Q2, HSBC says, as the company is “coming out of a cyclically weak 1Q.”
But there remains concerns about how far the company lags its peers in the race to capitalize on the AI revolution, HSBC adds, pointing out that Nvidia “recently announced its GB200 platform while “AMD (NASDAQ:AMD) should have next generation MI series accelerator announcement in 2H24.”
While intel announced its Gaudi 3 AI accelerator, HSBC says it is “still too early to assess potential as there is no meaningful supply chain ramp up.”
On Monday, Raymond James also joined in on the Intel price cut bandwagon, cutting its price on the chipmaker to $42 from $52.
