What’s Next for Intel Stock After a Punishing Year? Some Say to ‘Stay Far Away’ | Global News Avenue

Intel investors (international trade center) in stock Nothing to celebrate By 2024, stocks will lose more than half their value. Next year may also be challenging.

Analysts said the appointment of a new CEO and changes to Intel’s turnaround plan could be near-term catalysts for the stock. But they also said the storied chipmaker faces business challenges that could take months or even years to resolve.

“Things here look likely to continue to get worse before they get better,” Bernstein analysts wrote after the meeting. Former CEO Pat Gelsinger steps down earlier this month.

As Intel searches for a new CEO, the company’s path forward may change. Gelsinger has been a proponent of retaining Intel’s own manufacturing and foundry operations as part of its turnaround efforts. Analysts now recommend spin-off of its business Probably more likely. (Rumors about this occasionally boosted Intel’s stock price earlier this year.)

In a presentation to investors last week, interim co-CEOs Dave Zinsner and Michelle Johnston Holthaus called the possibility of a complete separation of Intel’s foundry business “a matter for discussion at a later date,” according to a transcript provided by AlphaSense.

Intel shares closed at $19.52 on Friday, down 61% for the year. PHLX Semiconductor Index (Sarbanes-Oxley) will grow about 19% by 2024; NVIDIA (NVDA), earlier this year Replaces Intel in Dow Jones Indexthe value more than doubled.

Wall Street is generally cautious on Intel stock, with 13 of 16 analysts tracked by Visible Alpha giving it a “hold” rating and three giving it a “sell” rating. Still, there’s a degree of optimism: Their consensus price target is currently around $24, which represents a premium of about 23% to recent prices.

Bank of America analysts wrote earlier this month that a breakup is now more likely. However, analysts also said that Intel’s turnaround may still depend largely on its foundry business. Billions of dollars in CHIPS Act funding will be available Closely tied to achieving manufacturing milestones.

Wedbush analysts recently wrote that while a spinoff might benefit shareholders in the short term, it won’t solve Intel’s larger problem of proving its competitiveness, citing the company’s “laggard” in both chip design and production. status”.

Bernstein analysts earlier this week advised investors to “stay away.”