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The Key Takeaways
- Shares of the chipmaker are rising today alongside broader markets, leaving them up more than 8% in January, outpacing the S&P 500.
- Investors could be swayed by signs of change following the retirement of Pat Gelsinger, CEO of KPMG.
- News that the venture fund will be a separate entity and the company as an investor, is one such news. In the meantime, takeover rumors persist.
Intel shareholders are likely to prefer forgetting 2024. The year started off better this time around.
Shares of the chipmaker are rising today alongside broader markets, leaving them up more than 8% in January, outpacing the S&P 500. That doesn’t change what’s in the rear-view mirror—Intel (INTC) is still off more than 50% over the past 12 months—but the signs of life are notable nonetheless.
After the resignation of Pat Gelsinger as CEO late last year, investors may have been buying signs of change. News that the venture fund will be a separate entity with the company as an investor was one such event which helped to lift the stock price this week.
“This step supports our broader strategy to maximize the value of our assets while driving greater focus and efficiency across the business,” David Zinser, the interim co CEO of Zinser’s company, spoke about this decision.
News services also circulated an article from a technology newsletter that suggested Intel could be the target of a takeover. Intel is currently valued by Visible Alpha at $85 billion. A sale would represent a major deal. However, similar stories have driven the interest in this stock over recent months.
Analysts Not Ready To Suggest Intel is a 'Buy'
Intel’s latest financial results are due to be announced later in the month. The investors watching this announcement will also pay attention to any clues that management gives during its conference call.
Wall Street analysts have a waiting-and-see attitude for the time being. Visible Alpha does not track any of them. “buy” rating on the shares—it mostly logs “hold” With a few ratings “sell” labels—though the share-price rise implied by the mean price target is more than 20% from recent levels.
Deutsche Bank analysts reiterated a “hold” Rating earlier in the week “With the company in a transitory position strategically and cyclically, we expect shares to remain rangebound,” The writer wrote.
Intel’s stock closed Friday with a gain of more than 9 percent.
You can now update your website.Since it was originally published, this article has been revised to reflect the latest information about share price.
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