Intel stock is trading at $28.22 as of 10:42 AM EDT on Thursday.
As a result of a “further deterioration” in the consumer PC market and the need to get rid of surplus inventory, investment company Bank of America cut its projections for Intel (NASDAQ:INTC) and Advanced Micro Devices (NASDAQ:AMD) on Thursday. Nevertheless, both semiconductor companies’ shares increased.
The analyst now expects Intel’s revenue to be $64.95 billion in 2022 and $66.66 billion in 2023, down from the analyst’s previous projections of $66.5 billion and $68.5 billion, respectively, and a buy rating on Advanced Micro Devices (NASDAQ:AMD) and underperform on Intel (NASDAQ:INTC).
Intel Stock Shows Weaknesses Despite Strong Financials
Arya has revised its forecast for AMD from an earlier expectation of $26.05B and $28.68B, respectively, to $25.76B and $28.09B in revenue for the Dr. Lisa Su-led business. Arya decreased predictions for AMD and Intel (NASDAQ:INTC) by 3% to 5% across the board.
While one more cut is unpleasant, Arya said, “our view is we are nearing the conclusion of PC-related cuts, especially for AMD.” He added that the company’s latest forecasts show an 11% year-over-year decline for 2023. In premarket trade, shares of AMD (AMD) and Intel (INTC) both witnessed a slight increase.
AMD, Intel Stock Prediction
Arya said that AMD is trading at an appealing value, at 17 times 2023 projections, and is likely to maintain gain share in the data center and sustain execution gains, while Intel stock is likely to suffer “continued strategic, financial, and competitive issues.”
In addition, Arya stated, “We continue to estimate $6 in [2024 earnings per share] power for AMD, implying an enticing [less than] 12x PE for a premier compute franchise.” Investment company Stifel began covering Advanced Micro Devices (NASDAQ:AMD) earlier this month, emphasizing the business’s outstanding execution and “growing IP portfolio.”
Featured Image- Megapixl @ Zeusgift
Author Jowi Kwasu 
