Analyst Christopher Rowland reiterated his negative rating on Intel stock, emphasizing his expectations for a further slowdown in corporate technology spending this year. “We believe 2023 is still a risk as weakness continues in the first quarter of the year, and the data center remains challenged throughout the year (due to competition from AMD),” he wrote. “We remain cautious about end-market spending and corporate spending.” Intel shares are now trading up 3%.
The forecast for the sale of personal computers is deteriorating during the last quarters. According to research firm IDC, worldwide PC orders fell 28% in the December quarter from a year earlier, following a 15% year-over-year decline in the September quarter. The research company emphasized that the boom seen by the market during the corona epidemic is expected to continue to decay.
Rolland expects a disappointing forecast from Intel when it publishes its reports for the fourth quarter at the close of trading on Thursday. However, he raised his price target for the chip maker’s stock from $22 to $24 based on investor sentiment. “We believe forecasts and valuations are coming down, but it is difficult to judge what is ‘in stock’ as sentiment remains low,” he wrote.
Intel stock trades for $30.1, which represents a market value of $124.1 billion. AMD stock trades for $75.9 which represents a market capitalization of $122.4 billion.
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