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Investing.com - Stifel has reiterated its Hold rating and $35.00 price target on Intel (NASDAQ:INTC), a prominent player in the semiconductor industry with a market capitalization of $181.5 billion, following the chipmaker’s third-quarter earnings beat. The stock has demonstrated remarkable strength, gaining over 72% in the past six months. InvestingPro data shows Intel is currently trading near its 52-week high of $39.65.
Intel delivered stronger-than-expected results across revenue, margin, and adjusted earnings per share in the third quarter, with gross margin benefiting from lower inventory write-downs, favorable product mix, and ongoing cost discipline.
The company’s fourth-quarter guidance aligned with consensus expectations when adjusted for the Altera deconsolidation, indicating resilience in Intel’s core x86 and AI infrastructure businesses, according to Stifel’s analysis.
Intel management expects supply constraints on older nodes versus newer nodes and early 18A ramp costs to limit margin expansion until after the first quarter of 2026, with strategic wafer allocation favoring its Data Center and AI segment over Client Computing.
Stifel notes that commentary around Intel’s 18A and 14A nodes, Foundry recovery, and portfolio reshaping under CEO Lip-Bu Tan suggests a tangible multi-year turnaround is underway, with margin improvements and enhanced competitiveness expected in the second half of 2026.
In other recent news, Intel Corporation reported its third-quarter 2025 earnings, which exceeded both revenue and earnings per share expectations. The company achieved earnings per share of $0.23, a significant increase from the forecasted $0.01, resulting in a 2200% surprise. Revenue for the quarter reached $13.7 billion, surpassing the anticipated $13.13 billion. Additionally, Intel provided guidance for the December quarter, projecting revenue of $13.3 billion, which aligns closely with consensus expectations of $13.4 billion.
Mizuho has raised its price target for Intel to $41.00 from $39.00, maintaining a Neutral rating, following the company’s strong quarterly results and guidance. Erste Group also increased its price target on Intel, from $23.00 to $41.10, retaining a Hold rating. The firm highlighted Intel’s $15 billion sequential improvement in net debt position, including a $4.3 billion debt reduction and contributions from the U.S. government, SoftBank, and sales of the Altera and Mobileye stakes. These developments reflect positive momentum for Intel in the eyes of analysts.
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