INTC stock wins price target raise at Roth

Following the launch of new products at a company event, Roth MKM analyst Suji Desilva has raised his price target on Intel (Intel Stock Quote, Chart, News, Analysts, Financials NASDAQ:INTC).

On December 14, INTC hosted its “AI Everywhere” event.

“Marking a momentous year for the company, Intel will accelerate its execution engine and power AI workloads across the data center, the cloud and the edge with the launch of 5th Gen Intel® Xeon® processors and Intel® Core™ Ultra processors,” the company said in a press release.

The analyst summarized the development.

“At its AI Everywhere launch event in New York, INTC discussed a set of products that introduce AI capabilities across a continuum of client, edge, and cloud devices. In the cloud, INTC launched its Xeon Gen 5 product with built-in AI acceleration that grows with increasing AI inferencing and edge workloads,” he said. “INTC believes that edge computes is the fastest growing segment for AI near-term. INTC also can potentially lead a client refresh cycle with its new
Core Ultra client processor that enables a new batch of AI PC models from key OEMs. We are encouraged by support here for newer Microsoft (MSFTNC) products such as Copilot and Windows Studio effects, along with a developer community of 100+ software vendors launching AI-boosted PCI apps. INTC’s client Core Ultra will also be the first processor to leverage the next INTC4 manufacturing node, with management indicating the five node in four years plan remains on track.”

In a research update to clients December 15, Desilva maintained his “Neutral” rating on INTC, but raised his price target on the stock from $35.00 to $45.00.

The analyst thinks Intel will post EPS of $0.94 on revenue of $53.9-billion in fiscal 2023. He expects those numbers will improve to EPS of $1.83 on a topline of $60.0-billion the following year.

“Our price target of $45 represents a CY24 P/E of 25x, a premium versus overall semiconductor large-cap median of ~20x reflecting a near-term earning leverage opportunity in recovery for the company,” he concluded. “Factors that may cause shares of INTC shares to deviate from our price target include variations in cloud/client demand, exposure to memory pricing volatility and risk of execution of the company’s manufacturing roadmap.”