Intel stock price target raised to $23 from $22 at Mizuho

Published 02/07/2025, 22:00
Intel stock price target raised to $23 from $22 at Mizuho

Investing.com - Mizuho (NYSE:MFG) has raised its price target on Intel (NASDAQ:INTC), a $95.3 billion semiconductor giant, to $23.00 from $22.00 while maintaining a Neutral rating on the stock. According to InvestingPro data, Intel’s shares currently trade at $21.88, with analyst targets ranging from $14.00 to $28.30.

The firm kept its June quarter revenue and earnings per share estimates unchanged at $11.8 billion and $0.00, respectively, compared to consensus estimates of $11.9 billion and $0.01.

Mizuho’s fiscal 2025 estimates remain at $50.5 billion in revenue and $0.26 in earnings per share, in line with consensus revenue expectations of $50.5 billion but below the consensus EPS estimate of $0.32.

The firm adjusted its fiscal 2026 EPS estimate to $0.79 from $0.70, while maintaining its revenue projection of $53.2 billion. For fiscal 2027, Mizuho raised its estimates to $56.5 billion in revenue and $1.44 in EPS from previous forecasts of $55.2 billion and $1.34.

Mizuho cited new CEO Lip Bu-Tan’s "renewed focus on engineering leadership" as a positive factor, noting Intel’s efforts to reverse market share losses in traditional server and PC segments while refocusing on AI and implementing operating expense reductions to improve operating margins. While currently unprofitable, InvestingPro analysis suggests Intel is slightly undervalued, with analysts expecting a return to profitability this year. Get the full analysis and 5 additional ProTips with an InvestingPro subscription.

In other recent news, Intel has reported several significant developments that investors may find noteworthy. The company is reportedly considering a strategic shift in its manufacturing focus, moving away from the 18A process to prioritize the next-generation 14A technology. This change could involve substantial financial write-offs, potentially in the hundreds of millions or even billions of dollars, as Intel aims to attract major clients like Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA). Meanwhile, Intel has expanded its collaboration with Nokia (HE:NOKIA) to enhance 5G network efficiency, utilizing Intel Xeon 6 processors to achieve significant reductions in power usage and server footprint. Additionally, Intel has announced key leadership appointments to strengthen its engineering capabilities, including the appointment of Greg Ernst as Chief Revenue Officer and several new engineering leaders. On the analyst front, Deutsche Bank (ETR:DBKGn) has resumed coverage of Intel with a Hold rating and a price target of $23, expressing cautious optimism about the company’s future under CEO Lip-Bu Tan. The bank highlights challenges such as high manufacturing costs and a need for leadership products, but sees potential upside if Intel successfully improves its manufacturing processes and product roadmap. Lastly, Mobileye, a company associated with Intel, has been selected by a major automaker to provide imaging radar technology for automated driving systems, furthering its influence in the autonomous driving sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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