Intel Corporation's stock was downgraded to a 'Sell' rating, with the primary concern being its unattractive valuation after the stock price nearly doubled. Despite recent improvements in earnings, the analysis suggests that the market's optimism about a turnaround may be premature. The report highlighted persistent structural issues, including lagging process technology, thin cash flow, and significant capital requirements for its foundry and AI strategies. Furthermore, management's own guidance for the upcoming quarter was viewed as cautious, lacking strong optimism and projecting a year-over-year decline in revenue, margins, and earnings, which contradicts the market's positive narrative.
Intel Downgraded to Sell as Analyst Questions Turnaround Narrative
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