But in Intel’s case, the semiconductor stock just received yet another downgrade. Mizuho’s Vijay Rakesh cut his rating on Intel shares to neutral from outperform after Wednesday’s closing bell, writing of “a tough road ahead to regain leadership.”
He joins analysts at HBSC, BofA and elsewhere who downgraded Intel’s stock after the company reported earnings last week. At the time, the company also announced massive layoffs and the suspension of its dividend, while providing a disappointing forecast.
See more: Intel’s worst stock drop in decades may have been steeper if not for this factor
Rakesh had turned bullish on Intel shares last November on optimism around artificial intelligence and new products, but he admitted Wednesday that his call was “wrong.”
Intel “has continued to lag its peers and is losing share in all key markets,” a dynamic which is estimated to continue through 2025, he wrote. The company’s “technology gap has widened with competitors,” Rakesh continued, and it could be difficult for Intel to make it back to the top.
Rakesh sees “no compelling products” on the horizon for Intel heading into next year, and he foresees few catalysts as well, since the company’s product roadmap seems unlikely to expand gross margins or fuel top-line growth much.
…Rakesh cut his price target on Intel shares to $22 from $36, while lowering estimates to numbers he said are “WELL BELOW” the consensus view. For example, he now expects $1.10 in adjusted earnings per share for next year, while analysts tracked by FactSet model $1.22. For 2026, his new adjusted EPS estimate of $1.65 compares with the $1.88 FactSet consensus view.