Home / Business and Economy / Intel Stock Rebound: JP Morgan Sees Bargain
Intel Stock Rebound: JP Morgan Sees Bargain
19 Oct
Summary
- JP Morgan upgraded Intel stock to Neutral from Underweight.
- CEO's execution has improved core client/datacenter compute market.
- Estimates may rise due to AI workloads and tight silicon supply.
Following a significant tech stock downturn, JP Morgan has identified Intel as a potential bargain opportunity. Analyst Harlan Sur upgraded the chip giant's stock to Neutral from Underweight on Monday, signaling a positive outlook.
Since the appointment of CEO Lip Bu Tan, Intel's execution in its core client and datacenter markets has notably improved. Furthermore, the company's competitiveness in next-generation manufacturing, including yield and advanced packaging, has seen substantial enhancements. Intel is also pursuing initiatives like ASICs, leveraging its intellectual property and design strengths.
Despite short-term concerns about AI infrastructure spending, projections suggest a potential increase in earnings per share. This outlook is supported by the growing demand for agentic AI workloads, which are CPU-intensive, and a constrained supply of leading-edge silicon. Intel's CY28 EPS estimates are reportedly 15% above consensus.
