{"id":4773,"date":"2026-05-11T15:16:52","date_gmt":"2026-05-11T15:16:52","guid":{"rendered":"https:\/\/tradertideinsights.com\/?p=4773"},"modified":"2026-05-11T15:16:52","modified_gmt":"2026-05-11T15:16:52","slug":"apple-deal-fails-to-lift-bofas-view-on-intel-stock","status":"publish","type":"post","link":"https:\/\/tradertideinsights.com\/?p=4773","title":{"rendered":"Apple deal fails to lift BofA’s view on Intel stock"},"content":{"rendered":"
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Investors continue to cheer Intel Corp (NASDAQ: INTC) following reports of its preliminary chip manufacturing agreement<\/a> with Apple Inc (NASDAQ: AAPL).<\/p>\n

This marks a seismic shift for Intel Foundry \u2013 suggesting the semiconductor giant is about to sign on a high-volume, high-profile mobile customer it has chased for years.<\/p>\n

However, Bank of America analysts led by Vivek Arya remain rather unimpressed, reiterating their \u201cunderperform\u201d rating on Intel stock and setting a $96 price target, signaling significant downside from current levels.<\/p>\n

Why BofA remains dovish on Intel stock<\/h2>\n

In his latest research note, Arya acknowledged the strategic importance of Intel\u2019s partnership with the iPhone maker.<\/p>\n

But he still favoured caution because the stock\u2019s parabolic rally has already priced in the best-case scenario for the Apple transaction.<\/p>\n

According to the BofA analyst, the partnership could ultimately deliver about $10 billion in yearly foundry sales, assuming Intel secures around 25% of the giant\u2019s semiconductor production volume.<\/p>\n

But he maintained an \u201cunderperform\u201d rating on INTC stock, noting that \u201cthe upside is already fully valued.\u201d<\/p>\n

Arya further cautioned that AMD and ARM are better situated to capitalize on the expanding server CPU marketplace, which he believes will achieve $120 billion by 2030.<\/p>\n

Insiders have been selling INTC shares<\/h2>\n

Beyond the Apple partnership, insider activity offers a dovish signal for Intel shares as well.<\/p>\n

April Miller Boise \u2013 Intel\u2019s executive VP and chief of legal affairs has recently trimmed her stake by 28%<\/a>, selling roughly $4 million worth of company shares at nearly $100 each.<\/p>\n

Boise\u2019s transaction marked the most substantial insider divestment at INTC in the trailing 12 months. <\/p>\n

Notably, the divestment occurred at a valuation significantly below Friday\u2019s closing price of about $125.<\/p>\n

Although insider sales occur for various personal reasons, such activity is typically interpreted as a bearish indicator, especially when the sale price is considerably below subsequent trading levels.<\/p>\n

As of writing, Intel executives control roughly 0.08% of the corporation, and no company insider has acquired shares during the past three months, reinforcing that those closest to the business see INTC as \u201covervalued\u201d at current levels.<\/p>\n

How to play Intel at current levels<\/h2>\n

While the Apple deal provides a long-term roadmap, Bank of America remains dovish also because of \u201cinsufficient details regarding contract specifics.\u201d<\/p>\n

Its analysts see a two-to-three-year period required for capital investment, production qualification, and manufacturing scale-up before the partnership bears fruit.<\/p>\n

In the immediate future, gross profit margin is anticipated to suffer. <\/p>\n

Equipment depreciation, lower production yields, and launch-related expenses for the M-Series processors will pressure bottom-line results.<\/p>\n

In short, BofA\u2019s research team believes Intel\u2019s target of achieving foundry operating profitability by 2027 may be delayed by one to two years.<\/p>\n

Ultimately, while INTC has captured the market’s imagination, the path to converting this initial agreement into consistent earnings remains fraught with execution risk.<\/p>\n

The post Apple deal fails to lift BofA's view on Intel stock<\/a> appeared first on Invezz<\/a><\/p>\n

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Investors continue to cheer Intel Corp (NASDAQ: INTC) following reports of its preliminary chip manufacturing agreement with Apple Inc (NASDAQ: AAPL).This marks a seismic shift for Intel Foundry \u2013 suggesting the semiconductor giant is about to sign on a high-volume, high-profile mobile customer it has chased for years.However, Bank of America analysts led by Vivek…<\/p>\n","protected":false},"author":1,"featured_media":4774,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-4773","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/4773","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4773"}],"version-history":[{"count":0,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/4773\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/media\/4774"}],"wp:attachment":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4773"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4773"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4773"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}