Wolfe Research said it remains "selectively positive" on semiconductor stocks, starting names such as Advanced Micro Devices Inc (NASDAQ:AMD), NVIDIA (NASDAQ:NVDA), and Qualcomm (NASDAQ:QCOM) at Outperform, but it assigned Intel (NASDAQ:INTC) an Underperform rating and $27 price target in a note Thursday.
The analysts told investors that the firm's fundamental view that they are not believers in the recovery trade due to it being too long, expensive, and uncertain has not changed.
"We believe that optimism about a recovery is again rising, which presents a risk that our Underperform call is early," wrote the analysts.
"Nonetheless, with the prospect of an industry-wide recovery for CY24, and INTC having little chance of generating any cash flow during that recovery, we think that sets up underperformance for the stock."
The firm's Underperform rating on the stock now reflects their view that "INTC is likely to underperform the group during a subsequent recovery."