Market Overview

Why KeyBanc Is Betting On Intel's Comeback

Why KeyBanc Is Betting On Intel's Comeback

Intel Corporation (NASDAQ: INTC), which has ceded market share to rivals including Advanced Micro Devices, Inc. (NASDAQ: AMD) and NVIDIA Corporation (NASDAQ: NVDA), could rebound strongly, according to KeyBanc Capital Markets.

The Intel Analyst: Weston Twigg upgraded shares of Intel from Sector Weight to Overweight and assigned a price target of $82. (See his track record here )

The Intel Thesis:  Intel may have finally worked through testing times, when it ceded its manufacturing technology lead, Twigg said in a Monday upgrade note. (See his track record here.)

The company is focused on maximizing its opportunities beyond PC, delivering a broad set of solutions for the evolving drivers of compute such as edge computing, datacenter computing, AI/ML autonomous things and 5G-enabled computing, the analyst said. 

The following three steps are driving Intel's comeback, he said:

  • Plunging deep and hard into AI, be it datacenter, 5G, IoT, edge/endpoint devices, inference, autonomous things. 
  • Diversify manufacturing by embracing the chiplet, leveraging packaging, multiply products on multiple nodes. 
  • Bundling it all together with software such as oneAPI.

"Intel is already focused on these steps, in our view, and if it executes well, it could stem share losses in core CPU markets and accelerate share gains in newer markets (IoT, GPU, edge), setting the Company up to outperform the broader semi industry over the next decade," Twigg said. 

The company's 10nm manufacturing has hit its stride, with products launching throughout the year, the analyst said. 

Notwithstanding fragmented competition, Intel has two distinct advantages over rivals, he said: in-house manufacturing, which creates a gross margin advantage and pricing lever, and high cash generation that can be used to fund R&D and acquire technology. 

INTC Price Action: At last check, Intel shares were up 1.39% at $60.16. 

Related Links:

AMD Analysts Eye Valuation, PC Risks, Intel Competition After Q1 Report

Why Key Intel Chip Design Exec's Departure Is Positive For AMD, Nvidia

Latest Ratings for INTC

Jul 2020BMO CapitalMaintainsMarket Perform
Jul 2020Morgan StanleyMaintainsEqual-Weight
Jul 2020Credit SuisseMaintainsOutperform

View More Analyst Ratings for INTC
View the Latest Analyst Ratings


Related Articles (INTC + AMD)

View Comments and Join the Discussion!

Posted-In: 5G KeyBanc Capital Markets semiconductorAnalyst Color Upgrades Price Target Analyst Ratings Tech Best of Benzinga

Latest Ratings

KEXB of A SecuritiesMaintains49.0
WYB of A SecuritiesMaintains30.0
FLOWB of A SecuritiesMaintains33.0
PEGB of A SecuritiesMaintains60.0
MRVLB of A SecuritiesMaintains50.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at