Key Takeaways:
- Intel shares tripled to $103.49 over the past year, up 347.1%
- Analysts raised 2027 revenue forecasts to $71.22 billion
- Average price target now $114.88, with revised targets averaging $120
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Intel triples in a year as analysts raise targets to $121
Intel shares have tripled to $103.49 over the past year, and analysts have raised 2027 revenue forecasts to $71.22 billion, implying further upside.
"The bottom line is that analysts agree that INTC still looks undervalued, despite its recent run-up," Mark Hake, CFA, a columnist at Barchart, said.
The average price target across 48 analysts tracked by Yahoo! Finance is now $114.88, up from $108.62 three weeks ago. Among the 12 analysts who have revised targets since Intel's Q2 earnings release, the average is $120, with a range of $80 to $160, according to AnaChart data. Intel's Q2 revenue rose 25% year over year to $16.1 billion, with Data Center and AI revenue surging 59% to $6.3 billion.
Intel completed a $20 billion equity offering at $95 per share in August to fund its manufacturing and AI infrastructure build-out. At a 9% free cash flow margin on 2027 revenue, Intel could generate $6.41 billion in FCF, implying a fair value of $641 billion, or $121 per share — 17% above the current market cap of $547 billion. A more optimistic scenario using a 20% FCF margin would put the fair value at $712 billion, or $134.74 per share.
Intel's client computing business also gained momentum, with Client Computing and Physical AI Group revenue reaching $8.9 billion in Q2, up 15% sequentially. AI PC revenue rose 26% sequentially and accounted for roughly two-thirds of client revenue, according to Zacks Equity Research. The company is ramping Panther Lake and Wildcat Lake products based on its 18A process technology, with output exceeding internal targets in Q2.
Intel's 2026 earnings estimates have risen 116.2% to $1.47 per share over the past year, while 2027 estimates are up 38.3% to $1.95, Zacks data shows. The stock has outperformed peers, gaining 347.1% over the past year compared with a 29.1% gain for the semiconductor industry. Advanced Micro Devices rose 168.4% and Nvidia gained 18.8% over the same period.
The company faces risks from China, which accounted for more than 24% of Intel's total revenue in 2025. Beijing's push to replace U.S.-made chips with domestic alternatives and escalating trade tensions could pressure Intel's revenue prospects. Intel also appointed Dean Jarnac as executive vice president and chief sales officer as it pivots into data center, AI and foundry services.
The equity raise and rising analyst targets point to management's expectation that AI-driven demand will accelerate. Investors will watch Intel's next earnings report for updated segment margins and progress on 18A process yields.
This article is for informational purposes only and does not constitute investment advice.
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