Intel Has Tough Road Ahead, Needham Says

On the heels of Intel’s tepid 1Q sales guidance, Needham downgrades shares of the chip maker to hold from buy. In a research note, Needham says Intel’s current elevated valuation, reduced revenue estimates, increasing competition in core and non-core markets and distant Intel Foundry Services revenue contributions are all setting up for a more difficult road ahead. Needham says that even after Intel’s after-hours selloff, its valuation topping 20x the firm’s reduced 2025 EPS estimate isn’t compelling compared to faster growing AI peers. Intel down more than 9% premarket to $44.69.

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