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Intel’s third-party chip-manufacturing business is gaining traction with customers and its server business is preparing to launch important products, Mizuho Securities said.
In a research note titled “Improving PC, DC, and Unlocking Value into 2024E; Raising Ests-PT,” analyst Vijay Rakesh flipped his call on
Intel
stock (ticker: INTC) to Buy after sticking with a Neutral call, the equivalent of Hold, for slightly more than two years. Rakesh raised his target for the stock’s price to $50 from $37.
Intel is “lining up significant new server product launches and Foundry customer announcements in the next six months,” the analyst wrote in the note, published late Wednesday, saying he now sees potential for share gains.
Intel’s CEO Pat Gelsinger has prioritized building up the company’s foundry business, which competes with Taiwan Semiconductor Manufacturing (TSM) in making semiconductors for other companies. The Wall Street Journal reported this month that Intel is the leading candidate to potentially receive billions in government funding to make chips for U.S. military and intelligence applications.
Last month, Gelsinger told Barron’s that during the past quarter Intel had signed up three customers for its 18A chip-manufacturing process, which will be used to produce cutting-edge chips.
Growing confidence in the outlook for sales of personal computers also bodes well for Intel’s stock. Rakesh cited that as a positive factor as well.
Intel shares have risen 40% over the last 12 months. The stock was rising 3% on Thursday.
Write to Karishma Vanjani at [email protected].
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