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Investing.com-- Mizuho analysts have lowered their price target on Intel Corporation (NASDAQ:INTC) (NASDAQ: INTC), saying that the semiconductor giant faces ongoing challenges in the PC and server markets.
Analysts lowered PT to $20 from $21 while maintaining a "Neutral" rating.
Intel reported a stronger-than-expected December quarter but provided softer-than-expected guidance for the March quarter, with revenue projected at $12.2 billion, below consensus estimates of $12.8 billion, analysts said.
Mizuho (NYSE:MFG) analysts pointed to several key concerns, including a roughly 15% sequential revenue decline in both its Client Computing Group (CCG) and Data Center and AI (DCAI) segments, as well as gross margins projected to drop 620 basis points quarter-over-quarter to 36%.
A primary factor in the downgrade was Intel’s AI roadmap, which has been pushed further behind competitors, Mizuho said in a note.
The company now expects to launch Jaguar Shores in 2027, lagging behind rivals such as Advanced Micro Devices Inc (NASDAQ:AMD), which is projected to generate $10-12 billion in AI revenue, and NVIDIA Corporation (NASDAQ:NVDA), estimated at $182 billion, analysts said.
Additionally, the server segment remains under pressure, with uncertainty surrounding the launch of Clearwater Forest in the first half of 2026., they added.
Despite potential long-term benefits from the CHIPS Act and SCIP funding, Mizuho analysts cited ongoing execution risks, leadership uncertainty, and competitive pressures in AI, server, and PC markets as reasons for the price target cut.
While Intel's transition to a foundry model and geopolitical positioning could provide future upside, near-term profitability and execution remain concerns, analysts stated.
