Intel (NASDAQ:INTC) Stock Price Up 4% - Still a Buy?

Key Points

• Intel shares rose about 4% to $90.47 amid optimism over a server-CPU shortage, expected AI-driven demand, and potential strategic cooperation with AMD.
• Analysts see possible near-term upside: New Street Research issued a Buy rating with a $125 target, while RBC expects Intel to beat third-quarter estimates and raise guidance. However, the broader consensus remains Hold, with an average target of $108.23.
• Third-quarter earnings are the key catalyst, with investors watching server demand, margins, foundry spending, and guidance. Risks include heavy foundry investment, uncertain customer commitments, margin pressure, and competition from AMD, NVIDIA, and TSMC.

Intel Corporation (NASDAQ:INTC - Get Free Report)'s stock price was up 4% during mid-day trading on Monday. The company traded as high as $92.09 and last traded at $90.47. Approximately 97,785,725 shares changed hands during trading, a decline of 16% from the average session volume of 115,740,617 shares. The stock had previously closed at $86.96.

Trending Headlines about Intel

Here are the key news stories impacting Intel this week:

• Positive Sentiment: New Street Research upgraded Intel to Buy and set a $125 price target, citing a shortage of server CPUs. Limited industry capacity could give Intel greater pricing power and help offset weakness in the traditional PC market. Intel Rises 5% as New Street Upgrade Cites Server CPU Shortage
• Positive Sentiment: RBC expects Intel to beat third-quarter estimates and raise guidance, with AI infrastructure demand supporting its data-center and server processor businesses. Investors are particularly focused on evidence that higher utilization and demand are translating into better margins. Intel Expected to Beat Q3 Estimates, Raise Guidance
• Positive Sentiment: Reports of discussions between Intel and rival AMD are fueling speculation about a possible partnership or other strategic cooperation. While details remain unconfirmed, any agreement could improve Intel’s competitive position and broaden its ecosystem. Intel Stock Surges After Talks With AMD
• Positive Sentiment: Intel unveiled its Crescent Island GPU D-series and Xeon-based rack designs for memory-intensive, “agentic” AI inference. The products target expanding data-center workloads and emphasize open ecosystem support. Intel Unveils Crescent Island GPU D Series
• Neutral Sentiment: Third-quarter earnings are the immediate catalyst. Options markets imply a potentially large post-earnings move, making management’s guidance on server demand, foundry spending, and gross margins more important than the headline results alone. Traders Are Pricing an 11% Swing in Intel Ahead of Earnings
• Negative Sentiment: Risks include Intel’s heavy foundry investment, uncertain customer commitments, margin pressure, and intense competition from AMD, NVIDIA, and TSMC. A weak outlook or failure to demonstrate sustained profitability could quickly reverse the current optimism. INTC Stock Before Q3 Earnings

Analysts Set New Price Targets

Several research firms recently commented on INTC. Citigroup initiated coverage on shares of Intel in a research report on Monday, October 19th. They issued an "outperform" rating for the company. Seaport Research Partners reaffirmed a "buy" rating and issued a $125.00 target price on shares of Intel in a report on Friday, July 24th. Royal Bank Of Canada reiterated a "sector perform" rating and set a $100.00 target price on shares of Intel in a research note on Sunday. Piper Sandler began coverage on Intel in a report on Wednesday, September 9th. They set a "neutral" rating and a $110.00 price target on the stock. Finally, Cantor Fitzgerald dropped their price target on Intel from $150.00 to $125.00 and set a "neutral" rating on the stock in a research report on Friday, July 24th. One analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, twenty-seven have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, Intel has a consensus rating of "Hold" and a consensus target price of $108.23.

Intel Trading Up 4.1%

The firm has a market capitalization of $456.58 billion, a PE ratio of -42.90, a P/E/G ratio of 9.23 and a beta of 2.22. The business has a 50 day moving average price of $101.97 and a 200-day moving average price of $103.18. The company has a current ratio of 1.60, a quick ratio of 1.25 and a debt-to-equity ratio of 0.47.

Intel (NASDAQ:INTC - Get Free Report) last posted its quarterly earnings results on Thursday, July 23rd. The chip maker reported $0.42 EPS for the quarter, beating the consensus estimate of $0.21 by $0.21. Intel had a positive return on equity of 2.62% and a negative net margin of 19.79%. The business had revenue of $16.13 billion during the quarter, compared to analysts' expectations of $14.43 billion. During the same period last year, the firm earned ($0.10) EPS. The company's quarterly revenue was up 25.2% compared to the same quarter last year. Analysts expect that Intel Corporation will post 1.05 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Lip Bu Tan bought 105,263 shares of the firm's stock in a transaction on Tuesday, August 11th. The shares were bought at an average cost of $95.00 per share, for a total transaction of $9,999,985.00. Following the transaction, the chief executive officer owned 1,314,669 shares of the company's stock, valued at approximately $124,893,555. This trade represents a 8.70% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 0.05% of the company's stock.

Hedge Funds Weigh In On Intel

A number of large investors have recently made changes to their positions in INTC. State Street Corp raised its holdings in Intel by 1.2% during the second quarter. State Street Corp now owns 216,849,675 shares of the chip maker's stock worth $30,278,720,000 after purchasing an additional 2,528,657 shares during the last quarter. Primecap Management Co. CA purchased a new stake in Intel during the second quarter worth $10,507,291,000. Bank of America Corp DE grew its holdings in Intel by 35.7% in the second quarter. Bank of America Corp DE now owns 31,724,362 shares of the chip maker's stock valued at $4,429,673,000 after purchasing an additional 8,342,514 shares during the last quarter. Legal & General Group Plc acquired a new stake in Intel in the second quarter valued at $4,096,110,000. Finally, Assenagon Asset Management S.A. increased its position in shares of Intel by 87.1% in the third quarter. Assenagon Asset Management S.A. now owns 30,214,769 shares of the chip maker's stock valued at $3,632,722,000 after buying an additional 14,063,302 shares in the last quarter. Hedge funds and other institutional investors own 64.53% of the company's stock.

Intel Company Profile

Intel Corporation NASDAQ: INTC is a global semiconductor company that designs and manufactures computing and connectivity products. Its portfolio includes Intel Core processors for personal computers, Xeon processors for data centers and enterprise systems, and products for networking, edge computing, graphics, and artificial intelligence workloads.

Through Intel Foundry, the company also provides semiconductor manufacturing and technology-development services for external customers. Intel develops process technologies, advanced packaging, and other manufacturing capabilities intended to support its own products and third-party chip designs.

Founded in 1968 by Robert Noyce and Gordon Moore, Intel helped establish the modern microprocessor industry and has historically supplied processors for PCs, servers, and other computing systems.

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