Intel (INTC) in Focus: Citi Downgrades Shares Despite Nvidia Partnership

Core Viewpoint - Intel Corporation has been downgraded by Citi from "Neutral" to "Sell" due to concerns over its valuation and the likelihood of success in its foundry business, despite a recent partnership with Nvidia [1][4]. Group 1: Downgrade and Valuation - Citi raised Intel's price target from $24 to $29 but downgraded the stock, indicating that the current price reflects an assumption of a complete turnaround in the company's fortunes [1][4]. - Analyst Christopher Danely believes that Intel's stock has rallied to levels that assume success in its foundry business, which he considers highly unlikely [2][4]. Group 2: Foundry Business Concerns - Danely has expressed skepticism about Intel's foundry unit's ability to compete effectively with established players like TSMC, suggesting that the partnership with Nvidia may only provide a temporary boost [3][4]. - The uncertainty surrounding the foundry business leads to a perception of greater risk than reward at the current stock price [4]. Group 3: Investment Alternatives - While acknowledging Intel's potential as an investment, there are other AI stocks that are perceived to offer greater upside potential and less downside risk [5].