Intel, Ford and Target rise premarket; Deckers slumps
Investing.com - Mizuho raised its price target on Intel (NASDAQ:INTC) to $41.00 from $39.00 while maintaining a Neutral rating following the company’s strong September quarter results and in-line December quarter guidance. The stock, currently trading at $38.16, has shown remarkable momentum with a 72% surge over the past six months and is trading near its 52-week high of $39.65. InvestingPro analysis indicates Intel is currently overvalued based on its Fair Value assessment.
Intel reported better-than-expected September quarter performance and guided for December quarter revenue of $13.3 billion, roughly in line with consensus expectations of $13.4 billion. With current revenue of $53.07 billion and an EBITDA of $9.2 billion, the company faces profitability challenges, as highlighted by InvestingPro’s financial health assessment. The company indicated that its 18A process technology yields are progressing as planned, though yields are not expected to reach "appropriate levels" until year-end 2026.
The chipmaker plans to return to the AI GPU market with its Crescent Island product for enterprise customers, with sampling scheduled for the second half of 2026. Server demand is improving, with December quarter guidance showing Data Center and AI Group estimated to grow 5% quarter-over-quarter while Client Computing Group is expected to decline 5%.
Intel is focusing on improving its cost structure, targeting $16-17 billion in fiscal 2025 operating expenses, down from a previous target of $17 billion. The company plans to reduce headcount by 13,000 quarter-over-quarter as part of these cost-cutting measures.
Gross margin is expected to decline 350 basis points quarter-over-quarter to 36.5% due to product mix changes and the dilutive impact of the Altera business exit, while capital expenditures are reiterated at $18 billion for fiscal 2025. For deeper insights into Intel’s financial health and future prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro, along with 8 additional ProTips and extensive financial metrics.
In other recent news, Intel Corporation reported its third-quarter 2025 earnings, surpassing expectations in both revenue and earnings per share. The company’s earnings per share (EPS) were $0.23, significantly exceeding the forecasted $0.01, representing a 2200% surprise. Revenue for the quarter reached $13.7 billion, outpacing the anticipated $13.13 billion. Additionally, Erste Group has raised its price target for Intel to $41.10 from $23.00 while maintaining a Hold rating on the stock. The firm highlighted several improvements, including a $15 billion sequential improvement in Intel’s net debt position. This improvement included a $4.3 billion debt reduction and additional funds from the U.S. government, SoftBank, the Altera sale, and the Mobileye stake sale. These recent developments indicate a positive trend for Intel, reflecting both strong financial performance and strategic financial maneuvers.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.