One of the biggest advantages that chipmaker Intel (NASDAQ:INTC) had to its credit was its phenomenal name recognition. Everyone knew Intel, and plenty of people trusted it. But that advantage is now eroding, though shareholders aren’t too concerned yet. Intel shares notched up fractionally in Wednesday afternoon’s trading.
It will likely come as a surprise to no one as who overtook Intel: it’s one of their key competitors, Advanced Micro Devices (NASDAQ:AMD). The Kantar BrandZ Most Valuable Brands report rates Intel as the number 48 most valuable brand around. AMD, meanwhile, stands at 41. That alone is tough to live down, but worse yet is a comparison of where these brands were just this time last year.
AMD actually ranked among the top 10 biggest risers in the Kantar report, gaining 53% just since 2023. In fact, AMD’s brand alone was worth $51.86 million in the Business Technology and Services Platforms category of the Kantar report, meaning that the gains are not only substantial but very recent. As for the reason behind it, most look to AMD’s rise in the AI sector, as exemplified by its recent purchase of Silo AI.
New Chip Troubles, Foundry Problems
But that was just the start. Intel also discovered that AMD’s new line of Ryzens are doing pretty well in benchmark testing. AMD’s new eight-core Ryzen 8 9700X processor actually managed to beat Intel’s Core i9-14900KS by 4% in single-core testing. Thankfully, Intel pulled a comeback win when the whole chip was tested. However, that’s mostly because the Core i9 in question had 24 cores to AMD’s eight.
Further, there’s a blow being dealt to Intel’s foundry ambitions, as it has started work on the Magdeburg fabrication center. That’s all fine and well, but there are several “regulatory and environmental objections” involved in the picture. Despite that, Intel looks to see chips rolling out of the Magdeburg plant between 2029 and 2030.
Is Intel a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on three Buys, 25 Holds, and three Sells assigned in the past three months, as indicated by the graphic below. After a 5.63% rally in its share price over the past year, the average INTC price target of $38.02 per share implies 9.5% upside potential.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
