On Friday, KeyBanc Capital Markets revised its price target for Intel Corporation (NASDAQ: INTC) upward from $60.00 to $65.00 while reaffirming an Overweight rating on the semiconductor manufacturer. This adjustment comes on the heels of Intel’s recently reported fourth-quarter 2025 financial results. Currently, Intel’s stock is quoted at approximately $54.32, hovering just below its 52-week high of $54.60. Despite these gains, the stock exhibits an unusually high price-to-earnings (P/E) ratio of around 1200, signaling significant overvaluation based on InvestingPro's fair value assessments.
The quarter’s results featured solid performance metrics, primarily bolstered by strong server CPU demand. Intel’s Data Center and AI division experienced a sequential growth of 15%, reflecting momentum in its key operational areas. These factors have contributed to an outstanding stock price appreciation of roughly 151.83% over the past twelve months and about 131.25% during the preceding six months.
Although the fourth-quarter earnings were favorable, Intel provided a cautious outlook for the first quarter of 2026, anticipating revenue and gross margin figures below analyst expectations. The company attributed this to peak capacity limitations and the initial operational phase of its 18A lithography process. This process ramp-up is expected to place downward pressure on gross margins in the short term.
KeyBanc’s positive stance hinges principally on the outlook for Intel’s foundry business segment. The firm highlighted the potential for Apple to become a client for Intel’s 18A manufacturing technology. Furthermore, Intel has indicated that customers’ decisions regarding its 14A foundry technology are projected in the latter half of 2026. Additional analysis available on InvestingPro covers over ten insights related to Intel’s financial health and competitive standing among more than 1,400 U.S. equities.
Intel anticipates an increase in production capacity throughout 2026, with expectations for growth exceeding typical seasonal patterns once early-quarter constraints subside. Complementing these statements, Intel’s fourth-quarter earnings per share of $0.15 notably surpassed analyst estimates of $0.08, marking an 87.5% positive surprise. Revenue for the quarter reached $13.7 billion, also beating forecasts set at $13.41 billion. Despite these favorable results, Intel’s shares showed limited volatility in aftermarket trading but underscore the company’s resilient financial status in a highly competitive semiconductor landscape.