Intel’s third-party chip-manufacturing business is showing promising progress with customers, while its server business is gearing up for significant product launches, according to Mizuho Securities. In a recent research note, analyst Vijay Rakesh revised his rating on Intel stock (INTC) from Neutral to Buy after maintaining a Hold position for just over two years. Rakesh also increased his price target for the stock to $50, up from $37.
Anticipated Server Product Launches and Foundry Customer Announcements
Rakesh highlights that Intel is strategically positioning itself for notable server product launches in the coming six months. Furthermore, the company is also preparing to make announcements regarding their Foundry customer base. Consequently, Rakesh now sees potential for Intel to gain shares in the market.
Intel’s Focus on Building Up the Foundry Business
CEO Pat Gelsinger has made it a top priority to strengthen Intel’s foundry business, which directly competes with Taiwan Semiconductor Manufacturing (TSM) in producing semiconductors for other companies. Recently, The Wall Street Journal reported that Intel is the leading candidate to receive substantial government funding for manufacturing chips for U.S. military and intelligence purposes.
Three Customers Already Signed Up for Cutting-Edge Chip Manufacturing Process
During the previous quarter, Intel successfully secured three customers for its 18A chip-manufacturing process, which is specifically designed to produce cutting-edge chips. This development further bolsters confidence in Intel’s future outlook.
Positive Implications from Growing Demand for Personal Computers
The increasing confidence in personal computer sales also contributes positively to Intel’s stock value. Rakesh acknowledges this trend as a favorable factor driving Intel’s growth.
Intel shares have seen a remarkable 36% increase in value over the past 12 months up until the previous day’s closing price. In premarket trading on Thursday, the stock experienced a slight uptick of 0.6%.