This Top Analyst Still Roots for Intel Corporation (INTC) on Back of Strong Majority Share in Client and Data Center Market

Though Intel must now face security issues looming over investor sentiment, one of the best performing analysts on the Street remains optimistic on the chip industry dominating the landscape.

Intel Corporation (NASDAQ:INTC) has analysts divided as to whether the chip giant’s recent security blunder will translate to gains for rivals AMD and NVDA or whether all chip players are impacted by this security issue.

Top analyst Vijay Rakesh at Mizuho is standing by Intel in spite of the chip security challenges circling the company, “optimistic” that this will not cause too bad of a blow to the giant.

Interestingly enough, the analyst likewise is in the camp of voices on the Street wondering if competitors AMD and NVDA could be poised to take advantage. However, as this industry leader runs the show on the chip landscape from capturing 99% share in Data Center to roughly 80% share in PCs, Rakesh keeps betting on this chip player even if high performance customers might not be too enthused by the situation.

On the whole, the stock still presents “attractive” value, and the analyst reiterates a Buy rating on INTC stock with a $47 price target, which implies a 5% upside from current levels.

The Intel team is aware of “the vulnerability” risk contingent upon the workload, and the analyst notes an OS software patch can address “most issues.”

Rakesh continues, “INTC noted it was seeing a security side channel exploit issue on its Client PC and Data Center processors (depending on workload) because of a ‘speculation execution’ code used in its architecture. In special cases, this could cause a 20-30% slowdown with the mitigation actions. INTC expects to issue software updates over the next couple of weeks and does not expect any financial or market share impact though this may be optimistic. We believe neither AMD nor NVDA is seeing similar issues on their data center processors given differing architecture, though with 80-99% share in Client/Data Center, customers might have few options outside INTC,” which the analyst believes could translate as a “leg up” for Intel’s competition.

Overall, the analyst surmises: “INTC not seeing a financial or market share impact, though we believe that could be optimistic. Given INTC’s 99% share in Data Center and ~80% share in PCs, we believe most of the industry has few options as INTC dominates the landscape.”

Vijay Rakesh has a very good TipRanks score with a 75% success rate and a high ranking of #20 out of 4,754 analysts. Rakesh yields 31.5% in his yearly returns. When recommending INTC stock, Rakesh earns 18.0% in average profits on the stock.

TipRanks points to a Wall Street that is torn between playing it optimistic and playing it cautious when it comes to this chip giant’s prospects. Based on 27 analysts polled in the last 3 months, a majority of 17 are bullish on Intel stock, 8 remain on the sidelines, and 2 are bears left running for the hills. With a return potential of 4%, the stock’s consensus target price stands at $46.70.

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