Northland Capital Markets downgraded Intel (INTC) from "Outperform" to "Market Perform."
The firm cites valuation concerns following a significant stock rally.
Analyst Gus Richard suspended the firm's price target for Intel.
Richard notes the current share price already reflects much of Intel's measurable turnaround progress.
Northland projects a potential decline in overall data center spending in 2027.
The firm expects large-scale cloud providers to become more cash-constrained.
Northland considers the stock expensive at its current multiple of projected 2027 earnings.
This valuation remains high even under an optimistic scenario for Intel's data center business.