10 AI News You Should Definitely Take a Look At

4. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 68

Intel Corporation (NASDAQ:INTC) designs and manufactures hardware for AI applications, including processors, accelerators, and solutions to enhance performance.

On January 21, HSBC upgraded Intel from Reduce to Hold with a $20 price target, saying the 26% drop in Intel’s stock since its Q2 2024 results has made it fairly valued. Analysts pointed out that issues like challenges with the IDM 2.0 strategy and the resignation of CEO Pat Gelsinger are already reflected in the stock price.

The firm expects Intel’s upcoming results to match expectations but sees a possible 9% drop in Q1 2025 revenue, more than the 6% expected by others, due to weaker performance in the data center segment. Concerns also remain about lower gross margins (38.5% vs. 39.1% expected) and uncertainty around Intel’s Foundry goals, which make the company’s recovery unclear.