Veteran analyst has blunt message on Intel stock

Intel banal is trading astir 0.52% little astatine $36.16 arsenic of the clip of writing. The banal is down, owed to a Reuters study stating that Nvidia has decided not to manufacture its chips utilizing Intel’s 18A node (manufacturing process) aft conducting immoderate testing.

In effect to this report, an Intel spokesperson told Reuters the company’s 18A node is “progressing well,” and that it “continues to spot beardown interest” for its next-gen node 14A.

I person intimately followed Intel’s moves this year, and wrote successful precocious September astir Intel engaging customers for its fabs: “Intel’s quality to pull customers depends connected however the motorboat of its Panther Lake and Nova Lake CPUs goes.”

Given that some CPU lines are acceptable to motorboat successful 2026, astatine the time, I saw small accidental that Nvidia would manufacture thing connected Intel’s 18A node until its issues had been wholly resolved. We’ll research this successful much item later.

Veteran expert Stephen Guilfoyle has been agelong connected Intel (INTC) for a fewer months.

Following the quality that Nvidia decided not to usage Intel’s 18A node, helium conducted his analysis, noting that since aboriginal August, Intel banal had developed a rising wedge signifier of bearish reversal.

Guilfoyle offered much item connected TheStreet Pro.

He added that being agelong connected Nvidia, AMD, Broadcom, and Intel leaves him somewhat overexposed to the space.

According to MarketBeat, the statement standing for Intel's banal is hold, with 20 analysts giving that rating, 6 giving a merchantability rating, and 5 giving a bargain rating. The mean people terms is $38.09.

“Importantly, we don’t expect a worldly betterment successful the existent unfavorable outgo operation for Intel Foundry, fixed dilatory interior adoption of 18A node (peak capableness successful 2030+) and foundry contention successful the U.S.,” Bank of America expert Vivek Arya wrote successful his probe enactment successful October.

He besides explained that Intel stock, trading astatine a 50 aggregate price-to-earnings ratio estimation for calendar twelvemonth 2027, is overvalued. Arya’s standing for INTC is underperform (sell equivalent), and a terms people is $34, based connected a 3 aggregate of his endeavor value-to-sales ratio estimation for 2027, successful enactment with the humanities scope of 1.7 to 4.

Nvidia sells millions of GPU chips, and it needs a reliable manufacturing process. Even if Intel was going to screen the outgo of the defective chips, that would mean the manufacturing would instrumentality overmuch longer, depending connected however atrocious the output complaint is.