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Intel (NASDAQ:INTC) edged lower in premarket trading Wednesday after Deutsche Bank restarted coverage on the chipmaker with a Hold rating, warning that its turnaround will require more time and patience from investors.
Analyst Ross Seymore set a $23 price target and pointed to several headwinds, including ongoing macroeconomic uncertainty and Intel's internal challenges such as high manufacturing costs and a lag in leading-edge products. Seymore said these issues are expected to keep pressuring both revenue and profitability in the near term.
The market has been cautiously optimistic following the recent leadership change, with Lip-Bu Tan stepping in as CEO. Seymore acknowledged that Tan brings strong tech experience and a customer-focused strategy, but said executing a turnaroundespecially in Intel's foundry businesswill be a long and difficult process.
Key to the recovery, Seymore noted, will be fixing the company's product roadmap and regaining competitiveness in chip manufacturing. While Tan's more disciplined communication and strategy are promising, Deutsche Bank emphasized that quick fixes are unlikely.
Over the past six months, Intel has struggled, slipping from the mid-$24 range in late November 2024 to about $21.27 as of May 21, 2025a decline of nearly 13%. A brief rally in February briefly pushed shares above $28, but gains evaporated as broader semiconductor weakness and disappointing guidance weighed on sentiment. Since that spike, the stock has oscillated between $18 and $22, failing to establish sustained upside momentum.
This article first appeared on GuruFocus.