11:06 AM EDT, 10/13/2025 (MT Newswires) -- Intel's ( INTC ) recent $80 billion rise in market capitalization reflects its improved balance sheet, but its outlook faces challenges due to the lack of a discernible artificial intelligence strategy and a "uncompetitive" server CPU, BofA Securities said in a Monday note.

The company has tried to develop or acquire new AI accelerator assets in recent years, but the project "seems to be either in a halt or no longer a focus area", the report said.

Intel ( INTC ) continues to struggle in gaining market share against Advanced Micro Devices ( AMD ) and ARM (ARM) in both personal computers and server CPUs, the note said.

Analysts note, however, that Intel ( INTC ) does have some positives, including backing from the US government, partnership with Nvidia ( NVDA ) , and a better gross margin profile going ahead.

BofA lowers the stock's rating to underperform from neutral, but maintains a $34 price target.

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