Truist Securities adjusted its price objective for Intel Corporation (NASDAQ: INTC) upward to $49.00 from the prior level of $39.00, while retaining a Hold rating on the chip manufacturer’s stock. At the time of this update, Intel shares are trading at approximately $54.32, remaining just under 1% beneath its recent 52-week peak of $54.60. The stock has surged impressively by 15.67% during the past seven days. According to proprietary valuations from InvestingPro, Intel's current valuation appears elevated compared to its estimated fair value.
Intel has surpassed analyst expectations for the fourth quarter, demonstrating notable strength in Data Center and Artificial Intelligence (DCAI) segment revenues, along with improved margins and earnings per share metrics. However, despite these better-than-anticipated results, the company’s guidance for the first quarter falls significantly short of consensus projections, reflecting ongoing operational challenges stemming from supply bottlenecks and elevated cost structures.
Truist highlights that the company has adopted a more optimistic tone regarding demand dynamics and reported progress toward securing an external customer for its 14a process node manufacturing. This positive shift in the outlook for the 14a foundry ramp-up is chiefly responsible for the increased price target. Notably, Intel's Price-to-Earnings (P/E) ratio stands at a strikingly high 1200, indicating substantial investor enthusiasm despite recent profitability being modest at only $0.05 per share over the previous year.
Despite raising the price target, Truist has lowered its earnings per share forecast for calendar year 2027 to $0.87 from $1.00, attributing the decline to anticipated higher costs of goods sold and impacts from non-controlling interests which are expected to weigh on profitability.
Within Truist's broader sector analysis, investors aiming for exposure to the robustness of x86 architecture combined with growing GPU market traction are advised to consider Advanced Micro Devices (AMD), which Truist rates a Buy. Those interested in comprehensive analyses of Intel’s financial positioning, valuation benchmarks, and additional strategic insights can refer to InvestingPro’s detailed Pro Research Report covering over 1,400 US equities, including Intel.
Additional analyst commentary on Intel’s recent quarterly performance has been varied. Benchmark has raised its price target to $57 and continues to endorse a Buy rating, citing the strong Q4 revenue results surpassing estimates by $236 million to reach $13.674 billion. Similarly, Northland lifted its target to $54, acknowledging positive Non-GAAP earnings per share surprises, albeit with cautionary notes on existing capacity constraints affecting first-quarter guidance.
Conversely, TD Cowen maintains a Hold rating with a price expectation of $50, citing alignment of earnings with forecasts but expressing reservations over the lowered outlook. Cantor Fitzgerald maintains a Neutral stance with a $45 target, noting surprise at the stock's 47% year-to-date appreciation. Rosenblatt Securities increased its price target from $25 to $30 while upholding a Sell rating, attributing the share price gains largely to market anticipation of forthcoming positive news.
These divergent analyst perspectives reflect a landscape of cautious optimism surrounding Intel, balancing recent strong operational results with concerns about near-term supply chain pressures and profitability constraints.