Can yesterday’s laggard become today’s leader in just a few months? Anything’s possible on Wall Street, and Intel (NASDAQ:INTC) stock is proving this principle by regaining the market’s favor. There’s no guarantee that INTC stock’s comeback will continue in 2024, but it may be worthwhile to own a few shares.
Now that Intel is jumping headfirst into the market for artificial intelligence chips, the company has to prove that it can compete against heavily favored rivals. That won’t be easy, but if you’re looking for a turnaround story with potential, take a look at Intel stock.
Why Did INTC Stock Zoom Higher in Q4?
It seems like forever ago, but in the first few months of 2023, Intel was roundly mocked because the company seemed to lose chip-market share. Intel stock, once worth around $69, briefly traded at just $24 and change.
Thus, the short sellers had a field day for a little while. The buyers got their revenge in 2023’s fourth quarter, though, as INTC stock zoomed above $50.
Granted, the stock market generally rallied in Q4 and, as the old saying goes, a rising tide lifts all boats. Yet, there were other factors at work. Specifically, Intel CEO Pat Gelsinger effectively declared war on the company’s rivals and fully committed to Intel’s foundry (i.e., chip manufacturing) business.
Intel unveiled new AI-compatible chips at the company’s AI Everywhere event. Citigroup analysts called this event “much ado about nothing.” Interestingly, the Citigroup analysts reiterated a “neutral” rating and issued a $34 price target on INTC stock.
Analyst Leans Bullish on Intel Stock
The Citigroup analysts’ bearish price target on Intel stock is duly noted. They observed that Intel didn’t announce any 2024 revenue targets at the AI Everywhere event, and this might cause concern for cautious investors.
Besides, Intel still has to prove in the coming year it can compete successfully in the increasingly crowded AI chip market. Nevertheless, at least one Wall Street expert expects further upside for INTC stock.
Not long ago, Northland Securities analyst Gus Richard issued a $68 price target on Intel stock. This implies notable 12-month returns for anyone buying the stock near $50.
Richard hopes to see Intel focus on efficiency in the company’s chip manufacturing processes. The analyst emphasized the importance of manufacturing efficiency, stating, “Over the last 20 years… the company with access to the best process technology has gained market share.”
And bear in mind, Intel was once mocked because the company lost some of its market share. Could 2024 be the year when Intel recovers its position as America’s processor powerhouse?
Richard seemingly believes it’s possible. According to Barron’s, the Northland Securities analyst “sees Intel’s new focus on efficiency driving non-GAAP gross margin to nearly 53% in 2025, from 43% in 2023.” So, Intel’s shareholders will need to be patient even if they’re confident in the chipmaker’s recovery story.
INTC Stock: Watch It Closely and Consider a Position
The buyers got their revenge against the haters in late 2023. However, no one can promise that Intel stock will continue to rally in 2024. Thus, any share position should be small and closely monitored.
At the same time, it’s fascinating to witness Intel’s in-progress revival after months of early-year mockery. With this in mind, consider Richard’s $68 price target as possible but not assured. Moreover, if you’re on board with Intel’s hated-to-celebrated story, consider a small share position in INTC stock.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.