Pay Attention to Intel in the AI Race, Analyst Says

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Intel

Investors should pay close attention to the next steps in the computer product and technology maker’s space, writes Melius Research analyst, who is a contender in the AI ​​race.

Melius Research analyst Ben Reitz rates

Intel

(Ticker: INTC) as a Buy with a $46 price target, which represents a 21% upside from Monday’s closing stock price.

When investors think about AI, they tend to think

Nivea

(NVDA) and

Advanced Micro Devices

(AMD) as the top two performers, Reitus said. But Intel’s AI chip, Gaddy, has been making some noise lately and Reitz’s bullish outlook on the stock is one reason.

Reitz says Wall Street hasn’t yet put a price on what this AI chip could do to the company’s top line over the next few years.

“While Intel should continue to enter software, the potential for hundreds of millions of Gaddy revenues is not in the street models,” Retz wrote in a research note on Monday.

On the company’s most recent earnings call in July, CEO Patrick Gelsinger said Gaddy from Intel has “robust and open options in the AI ​​market that are competitive with the competition in terms of both performance and cost.”

Reitzes isn’t the only analyst with confidence in the future of Intel AI. Raymond James analyst Srini Pajjuri reiterated his outperform rating and $42 price target on Intel on Thursday, saying in a note: “While Intel may not get much credit for its AI efforts in the near term, we believe the company is well positioned.”

Intel shares fell 1.2 percent to $37.53 on Tuesday. In the year By 2023, the stock had gained 42%.

Write to Angela Palumbo at [email protected]