BofA's Vivek Arya on Intel: We see no reason to buy a stock at 90x P/E

Core Viewpoint - Intel's stock has dropped 13% despite beating expectations for the fifth consecutive quarter, primarily due to strong AI demand in PCs and data centers, but first-quarter guidance is weak due to supply constraints [1][2] Group 1: Company Performance - Intel's manufacturing execution and product pipeline are not keeping pace with industry demands, leading to a disconnect between promise and reality [2][3] - The company is facing challenges in competing with leaders like Taiwan Semiconductor, AMD, and Nvidia while trying to maintain flat or reduced expenses [3] Group 2: Market Position and Competitors - Competitors such as Nvidia and AMD are better positioned to meet the current demand, which may hinder Intel's market performance [3] - Intel's stock has seen significant price increases in anticipation of its ability to compete with Taiwan Semiconductor, but manufacturing yields are currently below expectations [6][7] Group 3: Future Outlook - It is projected that Intel may take until 2028 to realize its manufacturing promises, indicating a long road ahead for the company [7] - The stock is currently rated as underperforming with a price objective of $40, reflecting concerns over its high price-to-earnings ratio compared to market leaders [4]