Analysts are still restrained in assessing the growth prospects of Intel shares

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Analysts are still restrained in assessing the growth prospects of Intel shares

The results of the year began to be summed up by the specialists of the stock market. From their point of view, Intel shares in the past year showed one of the worst dynamics among companies that were potential beneficiaries of the pandemic. The company faced a number of challenges that undermined investor confidence in its potential.

Intel
Intel

Intel shares have lost more than 21% since the beginning of the year. The moment of truth came at the end of July when CEO Robert Swan was forced to admit that there were problems with the adoption of 7nm technology, and therefore the company will rely more on the services of third-party contractors. An additional impetus in October was the announcement of Intel’s intentions to sell its solid-state memory business to the South Korean company SK Hynix. Apple’s refusal to use Intel processors and rumours of Microsoft’s willingness to develop its own processors only made matters worse.

Investors are not even consoled by the statements of Intel representatives about the projected amount of revenue in 2020, which should reach a record $ 75 billion. The processor giant’s profit, according to preliminary data, will reach $ 20.68 billion, which is twice as much as AMD’s revenue for the entire current year. According to the resource Barron’s, of the analysts monitoring Intel’s activities, about 46% recommend keeping the company’s shares in investment portfolios, and a quarter recommends selling them. Intel has an average target price of $ 52.65, just 12% above its current level.

By the way, other sources recommend considering Intel shares from the point of view of receiving dividend income, in this respect, they continue to remain attractive.

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