Intel stock price target raised to $24.50 from $21.00 at Stifel

Investing.com - Stifel raised its price target on Intel (NASDAQ:INTC) to $24.50 from $21.00 on Monday, while maintaining a Hold rating on the stock ahead of the company’s upcoming earnings report. The semiconductor giant, currently trading at $23.1 with a market capitalization of $100.76 billion, is showing signs of being slightly undervalued according to InvestingPro Fair Value analysis.

Intel is scheduled to report its earnings after market close on Thursday, which will mark CEO Lip-Bu Tan’s second earnings call and first full-quarter results since joining the company approximately five months ago.

Stifel expects Intel’s results to align with consensus estimates of approximately $12.0 billion in revenue, 36.2% adjusted gross margin, and $0.01 adjusted earnings per share.

The firm believes investor focus will center on longer-term commentary regarding 18A production, 14A ramp, and portfolio restructuring efforts, including divestiture of non-core functions and investments in AI-centric hardware and software offerings.

Stifel projects a "more material inflection" for Intel between the second half of 2026 and first half of 2027, contingent on execution, but maintains its Hold rating until catalysts materialize.

In other recent news, Mobileye reported preliminary second-quarter results that surpassed consensus estimates, with revenue expected to reach between $502 million and $506 million, marking a 14-15% increase from the previous year. This growth is attributed to heightened demand for EyeQ system-on-chip products. Mobileye also announced an agreement with Taiwan Semiconductor Manufacturing Company to manufacture components for its imaging radar and future EyeQ products. In a strategic move, Intel, Mobileye’s majority shareholder, revealed plans to sell 45 million shares of Mobileye’s Class A common stock through a secondary offering. Concurrently, Mobileye agreed to repurchase $100 million worth of its shares from Intel. Additionally, Intel plans to convert 50 million shares of Mobileye’s Class B stock into Class A stock, intending to hold these shares post-conversion. In another development, Intel Labs and the Weizmann Institute unveiled a new method to accelerate large language models by up to 2.8 times faster, enhancing efficiency in generative AI. Lastly, RealSense, a former Intel division, completed its spinout and secured $50 million in funding to expand its operations in the robotics sector.

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