Intel Corp. (NASDAQ: INTC) has received a reduced price target from RBC Capital, which lowered its estimate from $50 to $48 while sustaining a Sector Perform recommendation. The stock currently trades at $54.32, considerably above this revised target, signaling that the market values Intel higher than RBC Capital’s cautious stance. InvestingPro data further indicates that Intel’s price may exceed its implied Fair Value.
This adjustment by RBC Capital followed the release of Intel’s fourth-quarter earnings, which the firm described as "better," although tempered by a weaker-than-anticipated outlook for the first quarter of 2026. Despite these cautionary notes, Intel’s shares have experienced robust growth, delivering returns exceeding 150% over the past year and over 130% in the past six months.
Management at Intel attributed the softer near-term forecast primarily to ongoing supply constraints, yet projected above-seasonal growth for the remainder of the year as production conditions improve. The company remains profitable, reporting $53.44 billion in revenue over the trailing twelve months. However, Intel’s exceptionally high price-to-earnings ratio, reported at 1200, reflects investor expectations of significant future expansion.
RBC Capital highlighted challenges impacting Intel’s gross margin outlook, citing early ramp-up issues in 18A chip production characterized by subpar yields and an unfavorable product mix. Intel currently records a gross profit margin of 33.02% and operates with a moderate level of debt.
Although Intel’s management expressed optimism about advancements within its Foundry segment and hinted at a forthcoming 14A customer announcement anticipated in the second half of 2026, RBC Capital noted that substantial revenue contributions from this business are unlikely until late 2028.
InvestingPro categorizes Intel as a leading player in the semiconductor industry, with its stock price nearing a 52-week high of $54.60. For investors seeking detailed valuation insights and additional proprietary recommendations, Intel’s Pro Research Report is available through an InvestingPro subscription.
In related analyst activity, several firms have revised their price targets for Intel following its recent earnings disclosure. Deutsche Bank increased its target from $35 to $45, buoyed by a fourth-quarter 2025 performance approximately 3% above expectations. However, the firm tempered enthusiasm due to Intel’s forecasted 11% revenue decline in first-quarter 2026.
Mizuho also positively adjusted its price target, moving from $41 to $48, while expressing caution regarding a softer first quarter, with anticipated revenue of $12.2 billion falling short of consensus estimates of $13.3 billion.
Evercore ISI raised its price target to $45 from $41.10 but maintained an "In Line" rating, noting that first-quarter guidance was below seasonal norms due to internal supply limitations.
Conversely, BofA Securities reiterated an Underperform rating with a $40 price target, underscoring concerns about Intel’s ability to sustain a competitive and profitable operating model.
These various updates underscore a mixture of measured optimism concerning Intel’s long-term trajectory alongside apprehension about near-term operational challenges.