Key Stats for INTC Stock
- 1-Year Price Change for Intel stock: 150%
- $INTC Share Price as of Jan. 14: $49
- 52-Week High: $49
- $INTC Share Price Target: $39
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Intel (INTC) stock jumped over 7% on Tuesday after KeyBanc upgraded shares to “Overweight”, citing surging demand for the chipmaker’s AI data center processors and major progress in its manufacturing turnaround.
Analyst John Vinh dropped a bombshell in his note to clients: Intel is “almost sold out for the year” in data center server CPUs.
His supply chain checks reveal that Big Tech’s hunger for AI infrastructure is driving massive demand for Intel’s traditional computer chips, which work alongside Nvidia’s AI processors to power artificial intelligence models.
Vinh believes Intel may even raise prices on these chips due to tight supply.
But the real headline grabber was Vinh’s claim that Intel has landed Apple as a customer for its next-generation 18A-P manufacturing process.
According to his Asia supply chain checks, Apple will use Intel’s advanced chip fabrication technology to make low-end PC chips for Macs and iPads. This would mark Intel’s “first big whale design win” in its contract manufacturing business.
The rumored Apple partnership doesn’t stop there. Vinh said the two companies are also in talks for Intel to manufacture low-end iPhone chips using its upcoming 14A process in 2029.
Intel stock has been on a tear lately, up nearly 155% over the past year. The surge comes after a brutal period where the company lost market share to AMD and Arm while its manufacturing business bled cash.
But a new CEO, massive investments from the US government and Nvidia, and the successful launch of PC chips using its latest 18A manufacturing process have convinced investors that Intel’s turnaround is real.
The US government took a $8.9 billion stake in Intel last August, representing a 9.9% ownership position at $20.47 per share.
Then in September, Nvidia announced a $5 billion investment, sending Intel stock soaring 23% in a single day.
These votes of confidence from major players signal that Intel’s manufacturing revival is gaining traction.
See analysts’ growth forecasts and price targets for Intel stock (It’s free!) >>>
What the Market Is Telling Us About Intel Stock
The upgrade and Intel’s stock rally reflect growing belief that the company is finally executing on its comeback plan.
Vinh’s optimism centers on two key themes: surging AI-driven chip demand and manufacturing credibility.
On the demand side, Big Tech companies are spending massive amounts to build AI data centers, and that spending is trickling down to Intel’s traditional CPU business.
While Intel has struggled to compete directly with Nvidia’s AI chips, its processors remain essential for AI servers. The fact that Intel is nearly sold out for the year suggests this revenue stream is stronger than many investors realized.
The manufacturing story is equally important. Intel’s chip fabrication business has stumbled for years, missing timelines and failing to attract major customers.
But the improving yield of its 18A process convinced Vinh that Intel could become the world’s number two contract chipmaker, ahead of Samsung and behind only TSMC.
If the Apple deal materializes, it would validate Intel’s manufacturing turnaround in a major way. Apple is notoriously picky about its manufacturing partners, so winning its business would prove that Intel can deliver on quality and scale.
Vinh also noted that Big Tech cloud players are evaluating Intel’s advanced packaging technology for custom AI chips. Even if Intel doesn’t manufacture the actual chips, packaging them would generate revenue and help Intel gain a foothold in the AI market.
Intel stock still faces risks. The company is bleeding cash in its manufacturing division and continues losing market share to AMD in PCs and servers. It’s also far behind in the AI race compared to Nvidia and AMD.
But with a $60 price target from KeyBanc and shares trading around $46.70, analysts see meaningful upside if Intel continues to execute.
The partnership with Nvidia, announced in September, marked a strategic shift for Intel. Rather than trying to beat Nvidia head-on in AI chips, Intel is leaning into its dominant CPU position to partner with AI leaders.
This approach could prove smarter than going toe-to-toe with competitors who have a multi-year head start.
Estimate a company’s fair value instantly (Free with TIKR) >>>
How Much Upside Does Intel Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
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!
