TD Cowen Raises Intel Price Target to $75

TD Cowen analyst Joshua Buchalter raised the price target on Intel (NASDAQ: INTC) to $75.00 (from $60.00) while maintaining a Hold rating.

“Intel Reboot Progresses; As we previewed, Intel printed a beat/raise in DCAI and CCG, sending shares up meaningfully after-hours.

2H remains murky given supply constraints, higher input costs, and a soft PC backdrop, but the story is about inflecting CPU demand and Intel benefitting from it.

We appreciate the AI-driven server CPU story and long-term foundry potential, but valuation keeps us at Hold. PT to $75.

Our Thoughts: A solid set of results as Intel capitalizes on the demand opportunity and executes a steady turnaround.

Intel reported 1Q results above the high end of guidance and guided 2Q 9% above Street, driven by strong AI related demand that continues to outpace supply, improving factory output and yields, and favorable mix/pricing dynamics.

2Q’s ~200bp GM% step-down reflects higher contribution from early 18A ramps, a sharp increase in Panther Lake volumes that remain below corporate avg.

GM%, fewer inventory benefits vs. 1Q, and we think potentially increased outsourced Lunar Lake parts, partially offset by stronger pricing.

Given tight supply and weaker PC TAM expectations in 2H, Intel expects total 2H/1H to track its 10-yr seasonal trend, with Servers above and PCs below, with puts and takes on GM%.”

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