Stifel Raises Intel Price Target to $42
Stifel analyst Ruben Roy raised the price target on Intel (NASDAQ: INTC) to $42.00 (from $35.00) while maintaining a Hold rating.
“INTC delivered a robust 4Q beat ($13.7bn revenue, 37.9% adj-GM, $0.15 adj-EPS vs. $13.4bn, 36.5%, $0.08) on strong DCAI performance, but Q1 guidance disappointed ($12.2bn, 34.5%, $0.00 vs. $12.6bn, 36.1%, $0.06) as “hand-to-mouth” inventory (40% of peak) created a temporary supply bottleneck amid high demand for server CPUs (positive implications for AMD) and just-ramping 18A production.
Utilization is near capacity, however efficiency in terms of yields, consistency, mix, and pricing offer levers of organic improvement without growing CapEx.
1Q should be the fundamental trough; margins should rebound toward 40% by 1H27 as 18A yields improve at a +7-8% monthly cadence toward industry standards.
We view 2H26-1H27 as a potential catalyst window, in which INTC will host their first Investor Day under LBT, and could denote an infection point for firm long-term 14A volume commitments and advanced packaging ramps.
For now, though, shares appear fairly valued to us. TP to $42.”
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