What happened
Artificial intelligence (AI) is all the rage in tech investor circles these days, so companies touting their efforts in this sphere have often done well. This was one of the dynamics behind Intel‘s (NASDAQ: INTC) nearly 2% improvement in share price on Thursday. That performance convincingly beat the 0.6% rise of the S&P 500 index on the day.
So what
It wasn’t only investors who reacted positively to Intel’s investor webinar held on Wednesday; a pair of analysts also expressed their approval. The event, conducted by a trio of company executives, shined a light on the tech giant’s data center and AI efforts.
Besides the AI focus, Intel also announced that its new server products will hit the market sooner than the company anticipated, which likewise brought bulls into the stock.
Two prognosticators following Intel were encouraged enough to bump their price targets higher.
One was Raymond James‘ Srini Pajjuri, who now believes the shares are worth $35, up from his previous estimation of $33. Pajjuri was particularly impressed by those server rollouts, although he thinks Intel will continue to lose market share in the category. He maintained his overweight (buy) recommendation on the stock.
A steeper price hike was enacted by Deutsche Bank analyst Ross Seymore. He added $4 per share for a new level of $32, but he’s less bullish than his Raymond James colleague — he’s keeping his hold recommendation.
Now what
It’s always heartening when a company says it will roll out a competitive new product earlier than anticipated. But there’s talk and there’s action, and investors will be keeping an eye on Intel to see whether it matches the two as far as servers are concerned. They’ll also be hoping it rolls out some compelling AI technology before long.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
