Deutsche Bank has adjusted its valuation outlook for Intel Corporation (NASDAQ: INTC), increasing the target price from $35 to $45, although maintaining a Hold recommendation on the stock. Intel’s shares recently traded around $54.32, marking a remarkable 15.67% price increase over the past week and a substantial 151.83% gain over the previous year, according to market data.
This upward revision stems from Intel’s fourth-quarter 2025 financial report, which Deutsche Bank characterized as "solid", with reported revenue approximately 3% above the bank's projections. Despite these favorable results, Intel’s guidance for the first quarter of 2026 revealed a projected revenue decrease of about 11% quarter-over-quarter. This anticipated dip lies at the lower bound of typical seasonal fluctuations and is primarily linked to supply bottlenecks both within Intel’s manufacturing capabilities and from external sources. The supply constraints have limited the company's ability to fulfill the increasing demand, especially for Data Center Server CPUs, a key growth area.
Intel has communicated that these supply issues are expected to peak during the first quarter of 2026. The company projects gradual alleviation through enhancements in manufacturing yields, improved cycle times, and enhanced operational execution. These improvements are anticipated to drive revenue growth at levels above usual seasonal patterns from the second quarter through to the fourth quarter of 2026. Market data indicates that Intel’s share price is near its 52-week maximum of $54.60, with technical indicators suggesting an overbought condition. The stock also appears overvalued relative to its fair value estimates.
From an operational standpoint, Deutsche Bank highlighted Intel’s progress in semiconductor fabrication technology. The launch of three new Panther Lake SKUs on the advanced 18A process technology has exceeded expectations, surpassing the company’s initial target of one. Furthermore, ongoing external engagements with the 14A process node could solidify into formal contracts between the latter half of 2026 and the first half of 2027.
Additional recent developments include Intel’s noteworthy earnings surprise in Q4 2025, reporting earnings per share of $0.15 against the anticipated $0.08, equating to an 87.5% positive surprise. Revenue for the quarter reached $13.7 billion, slightly above the forecasted $13.41 billion, largely driven by a 15% quarter-over-quarter increase in the Data Center and AI segments.
Complementing Deutsche Bank’s outlook, KeyBanc has raised its price target on Intel stock to $65 from $60, affirming an Overweight stance. This reconsideration reflects confidence in Intel’s expanding foundry business as a significant growth driver.
For investors interested in a comprehensive analysis of Intel’s valuation metrics and long-term growth potential, dedicated research is available that delves deeper into the semiconductor giant’s financial and operational fundamentals.