Barclays Raises Intel Price Target to $25

Barclays analyst Tom O’Malley raised the price target on Intel (NASDAQ: INTC) to $25 (from $19) while maintaining an Equalweight rating.

“The integration of x86 with NVLink opens up INTC’s opportunity in DC but begs the question of what the future holds for ARM.

We see this as a net positive for INTC on higher attach rates in future AI systems.

For NVDA, PC pales in comparison vs. the scale of the DC business but you would have to imagine this also is the first step in driving more “real” AI PCs.

This does mean more legitimate competition for AMD where they are running away with the market today.

In DC, NVDA remains committed to ARM but you could see future SKUs potentially relying on x86.On a larger level it’s another investment in INTC, which probably comes with the wink and nod from the U.S. government and we would expect others to join in for future deals.

Whether this ultimately results in real progress or a diverse set of important stakeholders, both have to be considered a step in the right direction.

In the end, the technology at INTC remains the core issue and material dollars have yet to fix that problem. The move not to use the foundry shows where the process technology stands today.”

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