KeyBanc Upgrades Intel to Overweight

KeyBanc analyst John Vinh upgraded Intel (NASDAQ: INTC) from Sector Weight to Overweight with a price target of $60.00.

“We expect outsized data center demand from hyperscalers this year to be a significant tailwind for DCAI.

Our checks indicate INTC is almost sold out for the year in server CPU, and given the strength in demand, the Company is considering a 10-15% ASP increase.

We are seeing significant progress being made on foundry with 18A yields improving to over 60% and good enough to ramp Panther Lake.

While not best in class, as TSMC was at 70-80% when it launched 2nm, with INTC’s aspirations of being the #2 foundry supplier, 60%+ yield is significantly better than SF2 at Samsung Foundry, which we believe is less than 40%.

Our checks indicate IFS has landed Apple as a customer on 18A for low-end M- series processors for MacBooks and iPads, which is expected go into production in 2027.

Additionally, we believe INTC is in discussions with AAPL to use 14A to support low-end mobile A-series processors for iPhones in 2029.”

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