Melius Research has issued a buy rating for Intel, forecasting a price target of $165, which suggests a 70% upside from its recent closing price. Analyst Ben Reitzes believes that Intel's stock could potentially double to $200 due to anticipated foundry agreements with major clients like Apple and Tesla, particularly leveraging its 14A semiconductor manufacturing process.
Reitzes noted that if Intel's 14A technology achieves high-volume production by 2028, it could significantly enhance the company's valuation. He also pointed out that sustained pricing for server CPUs and a favorable mix of AI-related products could lead to earnings exceeding $4 per share.
This optimistic outlook follows reports that Intel is exploring a partnership with SK Hynix to manufacture memory chips in the U.S., which could further bolster its market position. Despite Intel's impressive 300% stock gain over the past year, the consensus among analysts remains cautious, with only 15 out of 50 recommending a buy, indicating a divergence in market sentiment