BofA Securities Double Upgrades Intel to Buy

BofA Securities analyst Vivek Arya upgraded Intel (NASDAQ: INTC) from Underperform to Buy with a price target of $135.00 (from $96.00).

“We double-upgrade Intel (INTC) to Buy from Underperform on higher confidence in INTC’s opportunity to help address industry constraints in leading edge wafers/packaging, plus supply into a much larger agentic CPU TAM.

See accompanying industry report for INTC’s position in the rising server CPU opportunity of $170bn+ by CY30.

Overall, we now see the total IDM CY30 EPS power of $6+ vs. $3-4 prior, though execution in both product/foundry remains key.

We also point to the recent CDNS ‘14A node’ IP sign-up and Terafab engagements as additional supportive data points, helping build INTC’s longer-term visibility in external foundry with a more sustainable IP ecosystem.

We raise ests and PO to $135 from $96 prior, now based on a comprehensive IDM valuation of 25x at CY30E EPS power of ~$6.24, discounted back two years, given the longer-term nature of foundry opportunities and a shift from our prior CY28E sum-of-parts methodology.”

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