Mizuho: Downgraded the Intel rating to a neutral price target of $55

Mizuho analyst Vijay Rakesh downgraded Intel's rating from buy to neutral, with a price target down to $55 from $70.

Rakesh told investors in a research note that the company announced on an earnings call that it would significantly increase its foundry investment by 100%, lowering gross margins again in the coming years.

The analyst now believes that Intel's "capital-intensive" foundry shift "adds uncertainty to the possibility of companies catching up to the frontier."

In addition, Rakesh told investors in the research report that in the next 2-3 years, the profit margin will be adjusted from the current 56% to 51%-53%, and "it may be difficult to return to the original level".

This article is derived from Golden Ten Data