Originally, former CEO Pat Gelsinger was brought in to turn around chipmaker Intel (INTC). However, the company apparently needs a whole new turnaround plan after Gelsinger’s tenure leading Intel.
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Interim Intel CEO David Zinsner says the new plan may look a lot like the old plan. The word from Zinsner is that Intel is still out to be “the western provider of leading-edge silicon.” And in order to do that, Zinsner wants to ramp up Intel’s products division to make it the powerhouse it will need to be in order to make that happen.
Zinsner added that in order for Intel as a foundry to be successful, then its top customer needs to be successful too. But Intel is actually its foundry’s own best customer, so Zinsner wants to get its products division improved to ensure plenty of internal orders.
Board Shuffle
In other news, Intel announced it has two new members of its board of directors: Steve Sanghi and Eric Meurice. Both are current names in the chip space; Sanghi is interim CEO of Microchip Technology (MCHP), while Meurice is former president, CEO and chairman of ASML Holding N.V. (ASML).
Finally, reports note that Intel’s price-to-sales (P/S) ratio is at the lowest it has been since 2022. When this happened back then, Intel saw a surge in its share price. While this particular lightning may not strike in the same place twice, patterns remain encouraging.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 22 Holds and six Sells assigned in the past three months, as indicated by the graphic below. After a 49.9% loss in its share price over the past year, the average INTC price target of $24.43 per share implies 17.06% upside potential.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
