Key Stats for Intel Stock
- Price change for Intel stock in last 6 months: 129%
- $INTC Stock Price as of Sep. 8: $104
- 52-Week High: $142
- $INTC Stock Price Target: $116
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What Happened?
Intel (INTC) stock jumped more than 9% after Northland Capital Markets analyst Gus Richard upgraded the stock to Outperform from Market Perform.
He also set a $120 price target, which points to about 15% upside from where shares closed the prior Friday.
Two big things are driving Richard’s optimism.
- First, there’s a shortage of server CPUs, and Intel is benefiting from that squeeze.
- Second, and maybe more interesting, is Intel’s partnership with SpaceX and Tesla to build a massive chip manufacturing complex in Texas called Terafab.
Richard said this partnership will meaningfully help Intel’s foundry business and give the company the scale it needs in its process technology.
The Terafab project is enormous. The first phase alone will cost $55 billion, and the full build-out is expected to run $120 billion.
Once complete, Terafab could produce 22.4 million advanced logic wafers per year, though that full build isn’t expected until the late 2030s.
For comparison, Northland estimates that TSMC’s capacity for chips under 5 nanometers sits at roughly 8 million wafers annually.
The first products from Terafab aren’t expected until mid-2028 or 2029, so this is a long-term bet, but Richard sees it as validation of Intel’s push into external foundry services.
This news lines up with what Intel itself has been saying.
On its recent earnings call, the company reported Q2 revenue of $16.1 billion and earnings of $0.42 per share, both well above analyst expectations.
Intel’s data center business grew 59% year over year, and CEO Lip-Bu Tan pointed to strong demand for the company’s 18A manufacturing process, along with progress on an even newer 14A process expected to ramp into high-volume production by 2028.
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What the Market Is Telling Us About Intel Stock
Intel stock has already had a massive run, up 327% over the past year, and today’s jump adds to that momentum.
According to InvestingPro data, 33 analysts have recently raised their earnings estimates for Intel, and the company is expected to return to profitability this year after recent losses.
Not everyone agrees the stock still has room to run, though.
InvestingPro’s analysis suggests Intel may be overvalued at current levels, reminding investors that after such a big rally, expectations are running high.
Other analysts have mixed views too. Bernstein SocGen recently raised its price target to $110, while Mizuho lowered its target to $92, citing valuation concerns.
Investor demand for Intel has clearly been strong lately.
The company’s recent $20 billion stock offering was heavily oversubscribed, with about a third of interested investors not getting any shares at all.
CEO Lip-Bu Tan personally committed to buying $12 million worth of shares as part of that offering, signaling his confidence in where Intel stock is headed from here.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
