Barclays raised its price target on Intel Corp. to $100 from $65, a 54 percent increase reflecting confidence in the chipmaker's turnaround strategy. The upgrade comes as Intel pushes deeper into its foundry business and AI chip production.
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Barclays raises Intel price target to $100 on turnaround optimism
Barclays raised its price target on Intel Corp. to $100 from $65, a 54 percent increase that reflects confidence in the chipmaker's turnaround strategy.
The new target, set on June 1, reflects Barclays' view that Intel's foundry expansion and AI chip efforts will drive meaningful revenue growth, the firm said in a note to clients. The analyst behind the call was not identified in the report.
The previous target of $65 implied limited upside from Intel's then-trading levels. The revised $100 target represents a significant re-rating based on expectations for improved execution in the company's data center and AI segments, areas where Intel has lost ground to rivals in recent years.
Intel shares have been under pressure as the company navigates a costly transition to become a foundry player competing directly with Taiwan Semiconductor Manufacturing Co. and Samsung Electronics. The Barclays upgrade provides a vote of confidence that the multiyear restructuring is gaining traction.
Intel has been investing heavily in its foundry business under Chief Executive Officer Pat Gelsinger, committing tens of billions of dollars to build new fabrication facilities in the U.S. and Europe. The company's turnaround hinges on winning external chip manufacturing contracts while stabilizing its core PC and server processor businesses, which have faced declining market share.
The broader semiconductor sector has seen renewed analyst interest as AI-driven demand for advanced chips accelerates. Intel's competitors, including Nvidia Corp. and Advanced Micro Devices Inc., have captured much of the AI chip market, but Intel is positioning its Gaudi AI accelerators and future chip designs to reclaim share in the fast-growing segment.
The upgrade suggests Barclays views Intel's foundry strategy as undervalued by the current market price. Investors will watch Intel's next earnings report for evidence of foundry customer wins and margin improvement in its core business, with the company's capital spending plans and foundry revenue trajectory as key metrics to monitor.
This article is for informational purposes only and does not constitute investment advice.
