- The shares of Intel Corporation (NASDAQ: INTC) have received a price target of $72 by Morgan Stanley. These are the details.
The shares of Intel Corporation (NASDAQ: INTC) have received a price target of $72 by Morgan Stanley. And Morgan Stanley analyst Joseph Moore reiterated an “Overweight” rating on the company shares.
Moore cited Intel’s plan to deploy its 10 nm SuperFin server processor called “Ice Lake” following multiple years of delays due to the 10 nm process. Even though Ice Lake was officially revealed a few days ago, the company already shipped more than 200,000 units in the first quarter. And the company claims more than a 40% performance improvement compared to Cascade Lake.
Moore noted that this was a step forward, but it was not closing the gap.
“While we are positive on Intel stock given the longer-term turnaround, it’s clear that they are going to lose share this year. The importance of Ice Lake is that it basically buys time; customers who are reluctant to qualify a new architecture will likely remain with Intel, as Ice Lake narrows the performance gap, and the CEO transition lends some credibility to the existing pipeline,” said Moore in the research note via Street Insider. “But for the most performance demanding customers, who have large workloads where the cost of qualifying a new CPU is low relative to the server costs (and we are thinking mostly of cloud service providers’ internal, rather than enterprise-facing, workloads).”
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