Intel's (INTC) turnaround is delayed by PC weakness, supply constraints, and slow foundry traction, BofA Securities said in a note Friday.
The analysts said the company has not yet demonstrated enough progress in attracting external foundry customers. While its data center business is performing well, this strength is expected to be offset by a 25% to 30% quarter-over-quarter decline in PC shipments in the fourth quarter.
Data center CPU demand is benefiting from growing artificial intelligence agent workloads, but Intel faces supply constraints, particularly for substrates, the analysts added.
The analysts said they lowered the company's 2027 and 2028 non-GAAP earnings per share estimates by 16% and 4%, respectively, to $1.69 and $2.79.
Looking further ahead, the expectation is that foundry customer wins will become a more meaningful contributor between 2028 and 2030, potentially lifting non-GAAP EPS to $5.89, they added.
BofA downgraded Intel to neutral from buy and adjusted its price target to $100 from $145. Shares of the company fell more than 28% in the session.
Price: 67.34, Change: -24.73, Percent Change: -26.86
