5 big analyst AI moves: Apple lifted to Buy, AI chip bets reassessed
Investing.com - Bernstein SocGen Group raised its price target on Intel (NASDAQ:INTC) to $35.00 from $21.00 while maintaining a Market Perform rating following the company’s strong third-quarter results. The semiconductor giant, currently trading at $38.16 and commanding a market capitalization of $181.5 billion, has seen its stock surge over 84% year-to-date according to InvestingPro data.
Intel reported third-quarter revenue of $13.65 billion and earnings per share of $0.23, exceeding consensus estimates of $13.15 billion and $0.01, respectively. Both client and datacenter segments performed above expectations, with the Client Computing Group showing particular strength driven by Windows end-of-life and PC refresh cycles. While the company’s trailing twelve-month revenue stands at $53.07 billion, InvestingPro analysis indicates Intel is currently trading at a high EBITDA multiple, suggesting premium market valuation.
The company achieved 40% gross margins, significantly outperforming expectations due to higher sales, improved product mix, and lower reserves. Intel noted that supply constraints, primarily on 10nm and 7nm nodes, are limiting further upside potential despite strong demand.
Bernstein highlighted several positive developments, including a cleaner financial report than in recent quarters, an improved balance sheet, and stronger core end markets. The firm also noted Intel’s progress in ramping its 18A manufacturing process and increased confidence regarding its 14A technology.
The analyst expressed caution about sustainability challenges, including PC market dynamics, yield issues with 18A technology, and potential margin headwinds in 2026, stating that while there’s "desire to claim victory for the embattled company... this fight is far from over."
In other recent news, Intel has reported stronger-than-expected third-quarter earnings, with improvements in revenue, margin, and adjusted earnings per share. The company’s gross margin benefited from lower inventory write-downs, a favorable product mix, and ongoing cost discipline. Following these results, several investment firms have adjusted their price targets for Intel. Rosenblatt raised its target to $25, citing solid progress driven by balance sheet improvements and rising demand for CPUs. Baird increased its target to $40, highlighting promising performance on Intel’s 14A process technology. Mizuho adjusted its target to $41, noting Intel’s better-than-expected September quarter performance and guidance for December quarter revenue of $13.3 billion. Erste Group also raised its target to $41.10, acknowledging a $15 billion improvement in Intel’s net debt position.
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