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Intel (INTC) Stock: Why This Chip Maker Just Got One of Wall Street’s Highest Price Targets
TLDR
- KeyBanc upgraded Intel and AMD to Overweight, citing nearly sold-out server CPU supply for 2026
- Intel considers 10-15% price hike on server CPUs due to strong AI infrastructure demand
- AMD’s server CPU revenue expected to grow at least 50% this year with similar pricing power
- Intel’s foundry business shows progress with 18A yields over 60%, Apple reportedly a new customer
- AMD targets $14-15 billion in AI revenue from MI355 and MI455 GPUs
KeyBanc analyst John Vinh threw his weight behind the chip sector Monday morning. He upgraded both Intel and AMD to Overweight ratings.
The move comes as server CPU demand hits levels not seen in years. AI infrastructure buildouts are eating up supply faster than manufacturers can produce chips.
Intel’s server CPU inventory is almost completely spoken for through 2026. The company now faces a pleasant problem: should it raise prices?
Management is weighing a 10-15% increase in average selling prices. That’s a hefty bump for an industry that typically sees prices drift lower over time.
KeyBanc set a $60 price target on Intel shares. That ranks among the highest calls on Wall Street right now.
Shares jumped 3.6% to $45.65 in premarket trading Monday. The stock has room to run if Vinh’s thesis plays out.
The Foundry Story Takes Shape
Intel’s chip manufacturing ambitions are starting to bear fruit. The company’s 18A process now shows yields above 60%.
That’s not enough to dethrone Taiwan Semiconductor Manufacturing. But it could be enough to leapfrog Samsung for the number two spot in advanced chip production.
Apple appears ready to test Intel’s capabilities. The iPhone maker reportedly signed up for low-end MacBook and iPad processors starting in 2027.
Discussions are also underway about using Intel’s future 14A process. Those chips could end up in lower-end iPhones by 2029.
The foundry business represents a complete strategic pivot for Intel. For decades, it only made chips for its own products.
Now it’s chasing outside customers to fill its factories. The Apple wins would validate years of investment and restructuring.
AMD Rides the AI Wave
AMD didn’t get left behind in Vinh’s upgrade spree. The analyst set a $270 price target on the stock.
Shares climbed 1.5% to $210.88 in premarket action. Server CPU revenue should grow at least 50% this year, according to KeyBanc’s checks.
AMD also plans similar price increases to Intel. Demand gives both companies rare pricing power.
The real money for AMD comes from AI accelerators. The MI355 and MI455 GPUs are flying off production lines.
KeyBanc expects 200,000 MI355 units to ship in the first half of 2026. The MI455 will ramp hard in the second half.
Between 290,000 and 300,000 MI455 chips are earmarked for AMD’s Helios rack-scale solution. That’s the company’s answer to Nvidia’s full-stack approach.
Total AI revenue should hit $14-15 billion for the year. That’s serious money even for a company AMD’s size.
Hyperscale cloud providers are driving the spending spree. They’re building out capacity to handle AI workloads that didn’t exist two years ago.
Both Intel and AMD are positioned to capture their share. The question now is whether supply can keep up with demand through the end of 2026.
