Intel shares down more than 58% in a year, but Citi maintains ‘neutral’ rating, expects Pat Gelsinger to be replaced within ‘months’ – Intel (NASDAQ: INTC ), Advanced Micro Devices (NASDAQ: AMD)

Intel Corporation international trade center Discussed 2025 priorities with Citi research analysts Christopher Danieliwhich includes the company’s artificial intelligence ambitions, resolving CPU manufacturing issues and appointing a new CEO.

What Happened: David Zinsner and Michelle Johnston Holthaus Named interim co-CEO of Intel on December 2, 2024 while the company searches for a permanent replacement. former CEO Pat Kissinger Retired and resigned from the board of directors after more than 40 years with the company.

In a research note dated January 9, 2025, Citi Research highlighted how it plans to address the most pressing issues in the new year. This includes fixing the product roadmap, fixing CPU manufacturing, and establishing a meaningful foothold in the AI ​​market.

The note also said that the company will streamline operations and aim to gain market share in the CPU market by 2025.

Talking about the search for a new CEO, the research note added, “We believe Intel is likely to announce a new CEO within a few months and reiterate our Neutral rating.” Set November 26, 2024 The target price remains unchanged at $22 per share.

See also: Intel stock at 27-year-old levels: How the world’s leading chipmaker lost its way three times

Why it’s important: Intel’s market capitalization has lagged significantly behind its competitors.

Although Intel is valued at $85.7 billion, Qualcomm Qualcomm The market capitalization is US$176.7 billion. AMD AMDArchrival Intel has a market capitalization of $197.7 billion, more than twice Intel’s.

NVIDIA Corporation NVDA Its market value is as high as US$3.43 trillion, which is far ahead, highlighting the huge gap in the valuation of the semiconductor industry.

In addition, Intel’s 13th and 14th generation processors have been plagued by performance issues. In August 2024, the chipmaker announced plans to cut 15% of its workforce, or about 15,000 jobs, despite receiving an $8.5 billion grant from the U.S. government.

Price Action: Intel shares fell 0.4% before the market opened on Friday. The stock has lost 42.99% in the past six months and 58.12% in one year. The Nasdaq 100 Index has outperformed, rising 2.45% in the past six months and 26.13% in one year.

About 31 analysts tracked by Benzinga gave Intel stock a unanimous “sell” rating, with an average price target of $30.23. BofA Securities, Northland Capital Markets and Mizuho are among the three latest analyst ratings, with an average price target of $24, implying an upside of 20.85%.

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