-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our 12-month target to $75 from $50, based on ~28x our 2028 EPS estimate ($2.64), above peer and historical P/E averages. Although valuation for INTC is outside our comfort zone, we see considerable upside to revenue and margin expectations (gross margin now has line of sight over 50% by 2027/2028 vs low 40s from the Street), as the CPU market has tightened in recent months. We believe the shift toward greater AI inferencing/AI Agents creates a new growth opportunity for CPUs, and while INTC had some execution issues last quarter, we expect improved results in 2H and 2027. Lead times for CPUs have extended considerably in recent months, which has also led to an upward bias to pricing that we expect to finally drive healthy gross margin expansion. Also, we expect INTC to capture more foundry orders in 2H as it demonstrates success for its internal products at leading-edge nodes, which will serve as an additional catalyst and bode well for long-term prospects of the company.