Intel: Be On The Safe Side And Trim (Rating Downgrade)

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Oct. 01, 2025 6:39 PM ETIntel Corporation (INTC) Stock, INTC:CA StockNVDA, NVDA:CA, INTC, INTC:CA1 CommentCash Flow Venue3.74K FollowersIntel Corporation has experienced a volatile five years, but recent government and Nvidia investments have driven a 60% stock price surge.NVDA's collaboration and equity stake offer optimism for INTC's turnaround, though the partnership excludes Intel's foundry manufacturing for Nvidia's core chips.Despite positive developments, INTC's current valuation exceeds the Nvidia deal price by 55%, prompting caution and profit-taking.I am downgrading INTC to a Hold rating, trimming my position by 35% to lock in gains while retaining shares for future potential.While the deal sparks optimism, there's a lot to be done on INTC's side to make the turnaround story investors currently expect achievable.JHVEPhoto/iStock Editorial via Getty ImagesIntel Corporation's (INTC) shareholders faced quite a volatile performance through the last five years, with INTC's stock price falling below $20 per share this year. My past articles dived into some of the problems INTC wasThis article was written byCash Flow Venue3.74K FollowersWelcome to Cash Flow Venue, where dividends do the heavy lifting! Blending my financial chops with the timeless wisdom of value investing (and love for steady income), I’ve built a rock-solid pillar in my financial foundation through dividend investing. I believe it’s one of the most accessible paths to achieving financial freedom, and I’m excited to share my insights with you. I’m a finance professional with deep experience in M&A and business valuation. What does that mean in practice? I’ve evaluated countless businesses and played key roles in sell-side and buy-side transactions, guiding clients through the complexities of buying and selling companies. In my day-to-day work, I dive into financial modelling, conduct commercial and financial due diligence to assess a company’s health, negotiate deal terms, and, of course, attend way too many meetings :) My focus spans sectors like tech, real estate, software, finance, and consumer staples - industries I’ve spent years advising and now invest in personally. Today, they make up the core of my portfolio and coverage on this platform. My motivation for writing on Seeking Alpha comes from a desire to not only deepen my own knowledge but also to share value with others who are on a similar path. Dividend investing has played a key role in my financial journey, and I believe it’s one of the most straightforward and accessible ways for anyone to work towards financial freedom. By sharing my insights and experiences, I hope to demystify the process, making it more approachable for those looking to build long-term wealth. Ultimately, my goal is to help facilitate OUR journey to financial freedom, learning and growing together as we navigate the world of dividend investing.Analyst’s Disclosure:I/we have a beneficial long position in the shares of INTC, NVDA, AMD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.The information, opinions, and thoughts included in this article do not constitute an investment recommendation or any form of investment advice.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comment(1)