Recent reports regarding Intel processors in Apple Mac computers hinted that the era of Intel’s dominance in this segment might be coming to a close. However, in a surprising turn of events, Intel shareholders reacted positively, propelling the company’s shares up by over 8% during Tuesday afternoon trading. This unexpected rally raises questions about investor sentiment amidst potential challenges.
The latest findings reveal that MacOS Tahoe will be the final version of MacOS to support Intel processors. This impacts various older models, including several MacBook Pro, iMac, and Mac Pro configurations. Although users of these devices will continue to receive updates with the launch of Tahoe, there’s a significant caveat: the new Apple Intelligence feature will not be accessible to Macs equipped with Intel chips. Reports indicate that this feature is exclusively designed for Apple’s proprietary processors.
The transition away from Intel was not entirely unforeseen. Apple has been gradually shifting from Intel to its own chips over the past five years. During this transition, Apple had assured users that it would support Intel processors “...for years to come.” As it turns out, this commitment is now nearing its conclusion, aligning with the shift to Apple’s silicon.
Despite the challenges posed by the loss of Apple as a customer for some desktop hardware, several factors contributed to the positive momentum of Intel’s stock. Notably, the entire chip sector received a boost from promising discussions regarding trade relations with China. Analysts noted that there are growing “...hopes that talks between the U.S. and China will result in looser export restrictions,” which played a significant role in enhancing investor confidence in Intel and its peers.
Additionally, Intel gained traction from developments within the Department of Defense (DoD). Intel’s federal chief technology officer revealed that the DoD is expected to provide “...operational technology-specific zero trust guidance,” aimed at fortifying cybersecurity measures for military systems, including critical infrastructure such as weapons systems and sensor arrays. This initiative indicates a potential for increased demand for Intel's technology in sensitive government projects.
Turning to Wall Street, the consensus rating for INTC stock reflects a cautious stance. Analysts have assigned a Hold rating, with one Buy, 26 Holds, and four Sells observed in the last three months. This cautious outlook comes in light of Intel’s share price decline of 33.76% over the past year. The average price target for INTC stands at $21.29 per share, suggesting a downside risk of approximately 3.88% from current levels.
For investors seeking insights into trading opportunities, consider exploring resources like TipRanks' Best Online Brokers guide, which can help you find the most suitable platform for your investment strategies.
