Intel seen facing multiple challenges in post-Mobileye world
JasonDoiy/iStock Unreleased via Getty Images

Intel (NASDAQ:INTC) shares edged just into positive territory Tuesday as Mizuho Securities analyst Vijay Rakesh set a new rating of neutral on the chip giant's shares in the wake of the spinoff of its autonomous driving business, Mobileye (NASDAQ:MBLY).
Rakesh said he was resuming coverage of Intel (INTC) as the company is seeing "increased challenges in both the server and PC markets." Among the issues Rakesh said Intel (INTC) is dealing with are a decline in demand for PC chips and a slow ramp in the introduction of new server chips that is expected to last into next year.
"While Intel (INTC) is regaining some share in PCs, in the key high-margin server [and] data center segment, it continues to see market-share loss heading into the first half of 2023," Rakesh said.
Rakesh noted that during its most-recent quarter, Intel's (INTC) data-center revenue fell 27% over the same period a year ago. Rakesh said this was in contrast to Advanced Micro Devices (AMD), which saw data-center sales rise 45% on a year-over-year basis, due in large part to the gains from its Milan chipset.
Along with his neutral rating, Rakesh also set a price target of $32 a share on Intel's (INTC) stock.
Rakesh's new views on Intel (INTC) came one day after he, and several other Wall Street analysts, started coverage on Mobileye (MBLY), which itself went public in late October.