Bernstein Raises Intel Price Target to $35

Bernstein SocGen Group analyst Stacy Rasgon raised the price target on Intel (NASDAQ: INTC) to $35 (from $21) while maintaining a Market Perform rating.

“Intel’s Q3 results were strong, with revenues well above the Street ($13.65B/$0.23 vs Street $13.15B/$0.01).

Both client and datacenter were above consensus, with CCG particularly robust on Win EOL and PC refresh; DCAI was also above on healthy Xeon demand.

The company noted supply constraints (mostly on 10/7nm) standing in the way of further upside.

40% gross margins solidly beat on higher sales, mix, and lower reserves.On the positive the print (at first glance) seemed at least a bit cleaner than we have become accustomed to, and the balance sheet has improved.

Core end markets are likely a bit stronger (Windows EOL etc) and commentary around “demand exceeding supply” on the surface sounds encouraging.

And the company is ramping18A while suggesting they feel more positive around 14A.

However, supply constraints appear primarily on 10/7nm (where demand is higher because customers are less enthused by Intel’s newer products) and seems likely to cost further share.

Sustainability of core markets (esp PCs) remains open for debate (EOL doesn’t last forever).

It sounds like 18A yields, while “adequate” to ship, still leave something to be desired (they suggested they wouldn’t really be at mature levels until the end of next year), and 14A remains a very long way off.

And it increasingly sounds like 2026 margins could be faced with a variety of headwinds.

We understand the desire to claim victory for the embattled company, but this fight is far from over; perhaps it’s better to call it a draw for now…Tweaking estimates, taking price target to $35 (now using 3.5x EV/’27E sales).

We rate Intel MP.”

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