Intel’s Resurgence Gains Momentum as Analyst Boosts Price Target

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A remarkable turnaround is underway at Intel, positioning the semiconductor giant for a potential new era of growth. The company's shares have more than doubled over the past year, fueled by a powerful combination of surging server demand, promising new manufacturing technology, and the prospect of a landmark deal with Apple. In a significant vote of confidence, analysts at KeyBanc Capital Markets have upgraded the stock and set a new price target of $60.

A potentially transformative development for Intel's business model is the reported interest from Apple. According to KeyBanc's research, the iPhone maker is considering utilizing Intel's upcoming 18A manufacturing process for low-end versions of its M-series processors. Looking further ahead, production of A-series chips for iPhones could shift to Intel's foundries as early as 2029.

Securing Apple as a client would represent a major strategic victory, likely generating billions in revenue for Intel's nascent foundry segment. Such a partnership would serve as a powerful endorsement of Intel's manufacturing capabilities, helping to establish it as a credible alternative to industry leader TSMC and potentially attracting other chip designers seeking production capacity.

Unprecedented Server Demand Drives Optimism

The foundation of Intel's recovery is a fundamental shift in its core business. KeyBanc analyst John Vinh, who upgraded Intel to a "Buy" rating, points to a critical supply-demand imbalance. Server CPU capacity for 2026 is already nearly fully booked, driven by massive data center expansions from hyperscalers like Amazon, Microsoft, and Google.

This overwhelming demand presents Intel with a high-class problem: it is struggling to keep up. The company is reportedly shifting manufacturing capacity from PC processors to server chips to meet the shortfall. Vinh anticipates this tight supply will allow Intel to raise average selling prices by 10% to 15%, providing a direct boost to profit margins.

The current generation Granite Rapids and Sierra Forest processors are built on the Intel 3 node. Their successors, the Diamond Rapids and Clearwater Forest chips, are slated to utilize the advanced 18A technology.

18A Technology Passes a Critical Market Test

Intel's technological execution is showing tangible results. The company has launched its first products based on the 18A process, the Core Ultra Series 3 (codenamed Panther Lake). Starting January 27, over 200 PC designs featuring these new processors will become available.

This product offensive promises significant performance leaps, including a 60% increase in multithreaded performance and a 77% boost in gaming performance compared to the prior generation. The successful rollout demonstrates to potential foundry customers that Intel has overcome key technological hurdles.

Financial Performance in Focus

Investors will be watching closely when Intel reports its fourth-quarter earnings on January 22. These results will indicate whether the positive business momentum is translating into stronger financial metrics. The company's market capitalization now stands at approximately $236 billion, a substantial recovery from its low of around $100 billion in the spring of 2025.