Intel (INTC) Faces 'Show-Me' Reset as DA Davidson Initiates Neutral Rating

Intel (NASDAQ:INTC) is one of the AI Stocks to Watch. Wall Street believes Intel (NASDAQ:INTC) is facing a “show-me” reset, with one research firm warning that current valuation is a reflection of overly optimistic assumptions. On February 12, DA Davidson analyst Gil Luria initiated coverage on Intel (NASDAQ: INTC) with a Neutral rating and a price target of $45.

Intel’s transformation seems to be one of the most challenging turnarounds in the semiconductor industry. Not only is the company working toward restoring its leading-edge manufacturing leadership, but also building credibility as a third-party foundry.

The research firm did acknowledge that there are “real developments across the business for investors to get excited about” at Intel. However, it remains a show-me story for now with execution remaining the key hurdle. Investors still need Intel to prove itself, particularly as the company hasn’t been profitable over the past twelve months.

Analysts, however, are optimistic that this year Intel will manage to return to profitability. As such, the current stock price “continues to reflect assumptions we view are all too optimistic,” leading to its Neutral rating.

Intel Corporation (NASDAQ:INTC) designs, manufactures, and sells advanced semiconductors, computer products, and technologies, delivering data storage, computer, networking, and communications platforms.

While we acknowledge the potential of INTC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.