Veteran analyst has blunt message on Intel stock

Core Viewpoint - Intel's stock is experiencing a decline due to Nvidia's decision not to manufacture chips using Intel's 18A node, despite Intel's claims of progress and interest in its next-gen 14A node [1][2]. Group 1: Intel's Current Situation - Intel's stock is trading approximately 0.52% lower at $36.16 following a report that Nvidia will not use its 18A manufacturing process [1]. - An Intel spokesperson stated that the 18A node is "progressing well" and there is "strong interest" in the upcoming 14A node [1]. - Veteran analyst Stephen Guilfoyle noted a bearish reversal pattern in Intel's stock since early August, indicating potential concerns about its future performance [3]. Group 2: Analyst Opinions - The consensus rating for Intel's stock is a hold, with 20 analysts recommending this, 6 suggesting a sell, and 5 advising a buy, while the average target price is $38.09 [5]. - Bank of America analyst Vivek Arya expressed skepticism about Intel's cost structure improvement for its foundry, citing slow adoption of the 18A node and competition [6]. - Arya also indicated that Intel's stock is overvalued, with a price target of $34 based on a low multiple of its enterprise value-to-sales ratio for 2027 [7]. Group 3: Nvidia's Position - Nvidia's decision not to use Intel's 18A node is influenced by the need for a reliable manufacturing process, as any defects would significantly delay production [9].