Intel to Restructure Data Platform Group Into Two Units
Global technology giant Intel (INTC) plans to restructure its Data Platform Group (DPG) into two new units — Network and Edge Group and Datacenter and AI. The company also plans to create two new business units that will focus on high-performance computing (HPC) and graphics, and software.
Intel offers semiconductor chips, microprocessors, and a broad portfolio of computing and communications devices. (See Intel stock charts on TipRanks)
Additionally, the company has announced organizational changes and said that technology veterans Greg Lavender and Nick McKeown will join its executive leadership team. Furthermore, current executives Raja Koduri and Sandra Rivera will be promoted to senior leadership positions.
Lavender, McKeown, Koduri, and Rivera will report directly to CEO Pat Gelsinger. Executive vice-president and general manager of the Data Platforms Group Navin Shenoy will help in the transition before leaving on July 6.
Atlantic Equities analyst Ianjit Bhatti recently downgraded his rating on the stock to Sell from Neutral and trimmed the price target from $63 to $45 (19.5% downside potential).
Bhatti said Intel’s revised IDM 2.0 manufacturing strategy may be the best long-term strategy, but it will have a negative impact on the company’s profitability until at least 2025.
Overall, the stock has a Hold rating based on 11 Buys, 11 Holds, and 7 Sells. The average Intel analyst price target of $64.80 implies 15.98% upside potential from current levels. The company’s shares have gained 12.5% year-to-date.
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