Rosenblatt Securities announced a price target increase for Intel Corporation (NASDAQ: INTC) to $30.00 from their previous $25.00, while continuing to maintain a Sell rating on the semiconductor giant. This adjustment comes in spite of Intel's shares currently trading near a 52-week peak of $54.32, closely approaching the $54.60 high, buoyed by a remarkable 47.21% appreciation year-to-date.
The upward revision of Intel's price target was attributed by Rosenblatt to investor enthusiasm around positive developments hinted at during the recent earnings release, such as the prospect of securing external foundry clients. Intel’s strong performance, highlighted by a 151.83% gain over the past twelve months, has clearly influenced market valuation.
However, Intel’s management clarified that announcements regarding potential foundry customers might not materialize until the latter half of 2026, with actual production slated to commence in 2028. This timeline runs contrary to some market expectations of earlier integration.
Financial results for the fourth quarter of 2025 were solid, driven by the company's efforts to use inventory and manufacturing capacity to satisfy rapidly increasing demand. Nonetheless, Rosenblatt highlighted that this strategy exhausted Intel’s available resources, leaving the company without surplus capacity - or "dry powder" - to meet the expected demand for the first quarter of 2026.
Rosenblatt continued to recognize Intel’s progression in semiconductor process technology, including beginning production on its advanced 18A process. Yet, the firm's Sell recommendation seeks to reflect skepticism about Intel’s valuation, which currently stands near 45 times the projected non-GAAP earnings per share for calendar year 2027.
The company’s most recent fourth-quarter earnings surpassed analyst estimates despite providing a cautious outlook for the following quarter. Internal capacity limitations have strained Intel’s ability to fully capture demand, particularly concerning server CPUs.
Market analysts have responded variably to these developments: Northland raised its price target to $54 while keeping an Outperform rating; JPMorgan lifted its target to $35 citing robust demand but upheld an Underweight rating; Mizuho raised its target to $48, pointing out expected soft revenue of $12.2 billion for Q1 2026, below the consensus forecast of $13.3 billion. RBC Capital trimmed its target marginally to $48, concerned by the weaker short-term outlook. Meanwhile, Needham maintained a Hold rating, factoring in supply constraints Intel currently navigates.
Overall, these amendments among analysts illustrate a cautiously optimistic appraisal of Intel’s long-term potential amidst notable short-term operational challenges and capacity constraints.