11:19 AM EST, 01/31/2025 (MT Newswires) -- Intel's ( INTC ) issues in product execution and manufacturing efficiency remain significant hurdles, with its future growth dependent on addressing weak central processing unit volumes, continued high costs, and delays in product launches, BofA Securities said in a note Friday.

The firm said it lowered its 2025 and 2026 earnings per share estimates for the company by 36% and 33%, respectively, citing weaker sales and margin pressures.

Despite these challenges, Intel ( INTC ) retains a strong position in the enterprise market for personal computers and servers.

Cost-cutting measures and restructuring efforts are expected to reduce operating and capital expenditures, with a goal of breaking even in its foundry business by 2027, BofA added.

Intel's ( INTC ) lack of a competitive artificial intelligence accelerator puts it at a disadvantage in the fast-growing AI market. Delays in next-generation products, including Falcon Shores and Jaguar Shores, further reduce its competitiveness, according to the note.

BofA reduced its price objective on Intel's ( INTC ) stock to $19 from $21 and reiterated its underperform rating.

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