DA Davidson raised its Intel price target to $100 from $77 after the chipmaker reported a strong AI-driven earnings beat. Intel posted adjusted EPS of $0.42 on revenue of $16.1 billion, well above consensus estimates, and issued above-forecast guidance for the third quarter.
DA Davidson raised its Intel price target to $100 from $77, citing the chipmaker's AI-driven earnings beat and stronger-than-expected guidance.
The upgrade follows Intel's second-quarter results, which showed adjusted earnings per share of $0.42 on revenue of $16.1 billion, well above the consensus estimates of $0.22 and $14.43 billion, according to data compiled by Visible Alpha. Revenue jumped 15% year-over-year, marking the company's strongest growth in more than 15 years.
Intel guided third-quarter revenue of $15.8 billion to $16.8 billion and adjusted EPS of $0.38, both above analyst expectations. Chief Executive Officer Lip-Bu Tan said AI is driving unprecedented demand for compute, helping Intel capture growth across its CPU franchise, ASICs, advanced packaging and foundry network.
The new $100 target from DA Davidson marks a roughly 30% increase from the previous $77 target. Intel shares have been volatile since the earnings report, falling 8% on July 24 despite the beat, as concerns about AI spending levels weighed on the broader semiconductor sector. The PHLX Semiconductor index has fallen nearly 20% from its June highs, with memory chip makers Micron and Sandisk among the biggest decliners.
The upgrade casts Intel as a beneficiary of the AI infrastructure buildout, with Tan's turnaround strategy gaining traction after he took the helm in March 2025. The company is also collaborating with Fortinet on the Security Processor 6 chip, built on the Intel 4 node, marking the first external customer on that manufacturing process. Intel competes with Nvidia and Advanced Micro Devices in the AI chip market, where demand for data center processors continues to grow.
The broader analyst consensus on Intel remains mixed. The stock has gained roughly 48% over the past 52 weeks, reflecting optimism around Tan's strategy, but the consensus rating on the stock is Hold, according to analyst surveys. The next event for investors to watch will be the semiconductor sector's ability to sustain AI-driven demand during a period of broader market volatility and geopolitical tensions in the Middle East that have pushed oil prices higher.
This article is for informational purposes only and does not constitute investment advice.
