35 AI Superstars According to Goldman Sachs

Page 16 of 34

19. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 75     

Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. As rumors swirl around the recent QUALCOMM offer to takeover Intel, news publication Financial Times reports that the former is only likely to pursue a friendly deal for the latter. Intel is concerned that a deal in this regard would be hampered by antitrust regulators. Intel has been working with elite finance advisors to evaluate the approach by QUALCOMM. Per the report, Intel is considering a wide range of asset sales. Previous reports on the chipmaker had contended that investment bankers from Morgan Stanley had been advising Intel for several months on how to defend itself from activist investors.

Citi analyst Christopher Danely recently reiterated a Neutral rating on Intel Corporation (NASDAQ:INTC) stock with a $25 price target. In an investor note, the advisory highlighted that Intel announced a multi-billion deal with Amazon Web Services to supply AWS with custom Xeon chips and also produce new artificial intelligence fabric chips. The advisory did not count the Xeon win as a true foundry win since these chips were something Intel already made. Citi was also concerned that customizing a Xeon would be a lower margin product.

Page 16 of 34