Barclays analyst Tom O'Malley increased Intel's price target from $45 to $65, maintaining an Equal Weight rating. Intel's stock has surged 126% year-to-date, trading near $83, which explains the cautious rating despite the target increase. Intel's Q1 performance showed significant improvements, with non-GAAP EPS of $0.29 and revenue of $13.58 billion. However, challenges remain, including a $2.4 billion operating loss in Foundry and pressure on gross margins. CEO Lip-Bu Tan emphasized a structural shift in AI, indicating future growth potential.
"Barclays' O'Malley acknowledged what the numbers made hard to ignore: production improved across the board and fundamentals are taking a turn for the better. Intel posted non-GAAP EPS of $0.29 versus a $0.01 consensus and revenue of $13.58 billion, marking a sixth consecutive quarter of beating guidance."
"Intel's Q1 was led by Data Center and AI revenue of $5.05 billion, up 22% year over year, and Intel Foundry revenue of $5.42 billion, up 16%. Client Computing remained the largest segment at $7.73 billion."
"Intel CEO Lip-Bu Tan framed the moment as a structural shift, saying, 'The next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic.'"
Read at 24/7 Wall St.
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