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Intel Stock Reaction to Nvidia Investment
Intel Corporation (NASDAQ: INTC) saw its stock price rise significantly on October 3, 2023, following the announcement that Nvidia (NASDAQ: NVDA) would invest $5 billion to assist Intel in developing AI infrastructure and personal computing products. However, Citigroup downgraded Intel’s stock to a “sell,” leading to a 3.3% decline in share price by 2:25 p.m. ET the same day.
Citigroup expressed concerns about Intel’s foundry business, which reported $17.5 billion in revenue last year but has experienced declining sales and a $8 billion loss in 2024. Meanwhile, other investment banks raised their price targets for Intel, with Benchmark setting a target of $43, indicating overall optimism from the majority of financial analysts despite Citi’s caution.
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