Will Intel stock hit $44? One Wall Street analyst thinks so.

It's hard to imagine struggling chip companies now.Intel (NASDAQ: INTC)Once the darling of the crowded technology industry. However, it wasn't long ago that the once-dominant company began to be overshadowed by competitors developing and producing highly competitive products. Many observers began to think Intel was outdated, a view that still lingers in the minds of many investors.

Bank of AmericaCertificates (Bank of AmericaVivek Arya, an analyst at Securities, is one market professional who seems to agree. After all, he recently lowered his price target on Intel stock while maintaining a neutral recommendation. But there's more to it than that.

Neutral but hopeful

In mid-April, Arya lowered its price target for Intel from $50 to $44 per share. However, even at the new price, the analyst expects some upside - which, if realized, would mean an increase of more than 23% from the most recent closing price.

Intel Corp. is focusing its efforts on proprietary chipmaking. That's because most of the world's advanced chips are made by a single overseas company.Taiwan Semiconductor Manufacturing Co.-Contract Manufacturing. Intel's desire to become a major competitor to this Asian counterpart has led to the creation of the Intel Foundry Business Unit (and the recent revision of financial reports to reflect its growing prominence).

For now, Intel's foundry business unit continues to post heavy operating losses, but Arya is bullish on the business. He writes that "the impending cyclical turnaround in PCs," coupled with the drive for artificial intelligence (AI) capabilities that require more processing power, could lead to significant growth for the company.

There's a lot more to prove.

However, Alia also emphasized some negative factors, not the least of which is the fact that Intel's competitors are setting up other chip manufacturing facilities. So while the potential of the entire chipmaking industry is huge, there's no doubt that the stalwart company has a lot of work to do in this new era. Intel today still needs to convince investors that it can be a strong competitor in this area, and for now, investors seem skeptical.

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Bank of America is an advertising name partner of The Ascent, a Motley Fool company. Eric Volkman does not own any of the stocks mentioned above. The Motley Fool recommends Bank of America and Taiwan Semiconductor Manufacturing Company, Ltd. The Motley Fool recommends Intel, and recommends the following options: a January 2023 $57.50 call option long, a January 2025 $45 call option long on Intel, and a May 2024 $47 call option short on Intel. The Motley Fool recommends the following options: Intel January 2023 $57.50 Call Option Long, Intel January 2025 $45 Call Option Long, and Intel May 2024 $47 Call Option Short.The Motley Fool has a disclosure policy.

Will Intel Stock Go to $44?1 Wall Street Analyst Thinks So.