Don’t be too quick to hop aboard the Intel (NASDAQ: INTC) bandwagon—so says Stifel analyst Ruben Roy. A top-ranked Wall Street expert, Roy doesn't expect significant developments from Intel's upcoming Q2 earnings report on August 1. The chip company’s Q2 revenue forecast was lowered after the U.S. revoked some export licenses for Chinese client Huawei in May. Roy's estimate of $12.75 billion is below the consensus of $12.93 billion.

Despite a potentially flat Q2, Roy anticipates a stronger second half of the year, with gradual recovery expected in Client and Enterprise CPU sales. He also foresees improvement in their embedded and networking/edge segments, which could contribute to growth later in 2024 and into 2025. Roy maintains a Hold rating on Intel stock, reflecting short-term optimism but long-term uncertainty.

Odd Man Out

Intel’s stock performance has been poor, with shares down 38% year-to-date, contrasting with the overall positive trend in the chip industry. In the 12 months ending Q1 2024, Intel’s revenue was $55.237 billion, compared to IBM’s $66.07B and Nvidia’s $79.774B. It did beat AMD’s revenue of $21.933 billion. Its market cap value is $130.95 billion. IBM’s market cap is $176.14 billion, AMD’s is $226.26 billion, and Nvidia’s is $2.781 trillion.

Intel's Gaudi 3 AI accelerator is gaining momentum but faces increasing competition from Nvidia, AMD, and custom silicon from hyperscalers in the long term.

What The Industry Thinks

While Roy doesn’t have a 12-month price target, others do. Intel's average analyst price target is $38.10, suggesting a more than 22% upside potential from current levels. Most analysts agree with Roy that it’s not time to jump in. Based on 22 Hold ratings, 3 Buy ratings, and 3 Sell ratings, the overall analyst consensus on Intel is Hold. As of Monday afternoon, INTL shares were trading down 1.20% at $30.975.

Julie Stoller does not have positions in this company. Stocks.News does have positions in Intel.