Intel Stock Downgraded. Why the Rally Is Overdone
Intel stock has been on a tear recently after striking deals with Nvidia, SoftBank, and the U.S. government. But one analyst thinks the rally is now overdone.HSBC's Frank Lee downgraded the shares to Reduce, a Sell equivalent, from Hold in a note late Tuesday -- he increased his price target to $24 from $21.25. The shares slipped 0.4% to $37.03 ahead of the market open Wednesday.Lee noted the stock has surged more than 50% since the first of those deals was announced in August, adding that the shares' recent rerating was "unsustainable." The analyst said a technology sharing deal with its rival Taiwan Semiconductor Manufacturing was "the only one that matters," but "seems remote." He said such an agreement could revamp Intel's foundry business.Intel's shares have had a resurgence in recent months following a flurry of high-profile investments in the company. Last month, Nvidia announced it would invest $5 billion in Intel stock at a purchase price of $23.28 as part of an agreement in