Citi Downgrades Intel Amid Nvidia Partnership Skepticism

Intel shares slid in premarket trading after Citi analyst Christopher Danely downgraded the stock to Sell, despite raising his price target to $29 from $24. The MOVE follows a 23% surge on Thursday fueled by Nvidia's $5 billion investment for a 4% stake and a chip development partnership.

Danely, a 4.5-star rated analyst, contends Intel's 50% recent rally already prices in unrealistic foundry success. 'The collaboration doesn't address fundamental manufacturing challenges,' he noted, arguing Taiwan Semiconductor maintains insurmountable advantages in chip fabrication.

Valuation concerns drove the downgrade. While the Nvidia deal provides short-term momentum, Citi sees scant evidence Intel can transform its foundry operations into a competitive force against established players.