TD Cowen Reiterates Hold on Intel (INTC) After U.S. Government Stake Deal

Intel Corporation (NASDAQ:INTC) is one of the AI Stocks Hit with New Analyst Ratings. On August 25, TD Cowen analyst Joshua Buchalter reiterated a Hold rating on the stock with a $20.00 price target following the announcement that the US government is taking a stake in the chipmaker.

According to the firm, the finalized agreement with the Trump administration on previously signed CHIPS Act and Secure Enclave funding is seen to be positive. This is because the company seems to be in a favorable political position now.

However, the firm pointed out that Intel isn’t receiving any meaningful net new capital, and that the company’s issues are technical and competitive. These issues aren’t such that funding alone can resolve them.

It also believes it is difficult to be confident about Intel’s future both in the short and long-term. The challenges weighing in on the company are going to take their due time to resolve, and solid proof such as earnings or cash flow will take time to show up.

“Net, it remains difficult for us to gain confidence in the immediate and long-term path forward. Roadmaps and customer confidence are not (re)built overnight, and the strategy seems very much in flux. That said, Intel’s market breadth and extensive intellectual property assets across compute, combined with now more closely aligned incentives with the White House, cannot be fully counted out yet, and there are likely ways to monetize its collection of assets for shareholders. We think the near-term and long-term overhangs on the narrative will likely be an overhang until more tangible metrics (e.g., earnings, FCF) begin to inflect to support valuation…which we think remains a long ways away.”

Intel Corporation (NASDAQ:INTC) designs and sells computing hardware, semiconductor products, and AI-driven solutions for various industries.

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