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Investing.com - Deutsche Bank raised its price target on Intel (NASDAQ:INTC) stock to $30.00 from $23.00 on Monday, while maintaining a Hold rating on the semiconductor company. The stock, currently trading at $35.50, has surged 23.44% in the past week alone.
The price target increase follows a busy month for Intel, which has seen its stock rise approximately 40% over the past month to around $35 per share amid multiple significant corporate developments. According to InvestingPro data, the stock is now trading near its 52-week high of $36.30, with an impressive 56.32% gain over the past six months.
Deutsche Bank noted that Intel has undertaken several strategic moves recently, including multiple equity raises involving the U.S. government and Nvidia, new collaborations with Nvidia, the divestiture of Altera, and navigation of macro-related impacts such as tariffs and trade restrictions. Get deeper insights into Intel’s strategic moves with InvestingPro’s comprehensive research reports, available for 1,400+ top stocks.
The bank’s analysts view these actions as reflecting CEO Lip Bu Tan’s "aggressive pursuit of strengthening the company’s balance sheet at all costs," a strategy they support as Intel continues a period of high investment in both its product roadmap and the development of its Intel Foundry Services (IFS) business.
Deutsche Bank observed that Intel’s stock is now trading at approximately 29 times their calendar year 2027 pro forma earnings per share estimate of $1.20, significantly above the company’s historical average price-to-earnings ratio of about 14 times, suggesting the market is responding not only to event catalysts but possibly also attempting to assign valuation to Intel’s emerging foundry business. With an EV/EBITDA multiple of 21.45x and current market capitalization of $165.79 billion, InvestingPro analysis indicates the stock is currently overvalued relative to its Fair Value.
In other recent news, Intel has reportedly approached Taiwan Semiconductor Manufacturing Company to discuss potential investments or partnerships, as reported by the Wall Street Journal. Additionally, Intel is said to be in early-stage discussions with Apple regarding a possible investment, according to Bloomberg and Bernstein analyst Stacy Rasgon. These discussions may involve collaboration in chip manufacturing, design, or packaging, although no official comments have been made by either company.
Intel has been actively seeking strategic investors and has recently secured deals with Nvidia and SoftBank totaling $7 billion to revamp its foundry business. Analyst Gene Munster from DeepWater Asset Management suggests that Apple’s potential investment in Intel may be driven more by political factors than strategic ones. Meanwhile, Seaport Global Securities has upgraded Intel’s stock rating from Sell to Neutral, highlighting potential strategic shifts in its fabrication facilities. Erste Group has also upgraded Intel’s stock rating from Sell to Hold, citing the company’s ongoing transformation and improvements in manufacturing technology.
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