The Lever That Could Take Intel Stock to $165 Per Share, According to Wall Street
Intel (INTC) is entering a potentially important phase of its transformation, with its manufacturing ambitions emerging as a key source of investor interest. As the company expands its foundry capabilities and explores new strategic relationships, Wall Street is increasingly focused on whether these efforts could unlock value beyond Intel’s existing operations.
That optimism was reflected in INTC stock, which climbed 7.7% on Thursday, Sept. 17, following several analyst upgrades and growing enthusiasm around Intel’s manufacturing strategy. Reports that SK hynix (SKHY) is exploring memory-chip production at Intel’s Ohio facility, either directly or through a joint venture involving major cloud providers, added another potential catalyst to the story.
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Among the analysts turning more constructive is Ben Reitzes of Melius Research, who has reiterated a “Buy” rating and a $165 price target on INTC stock. His thesis rests largely on the potential value of Intel’s foundry business, which he believes could eventually be separated around 2030 and operate as a standalone U.S. semiconductor manufacturer.
Reitzes estimates Intel’s foundry and product businesses could each ultimately be worth more than $80 per share, creating the foundation for his $165 valuation thesis. Intel’s planned increase in 2027 capital spending, including investment in its next-generation 14A process, further reinforces the company’s commitment to its manufacturing roadmap.
However, there is more to the story. Let’s take a closer look.
About Intel Stock
Headquartered in Santa Clara, California, Intel is a global semiconductor and technology company that designs and manufactures processors, graphics, networking, artificial intelligence (AI), and connectivity products.
With a market cap of roughly $547.8 billion, it also provides data center and computing solutions, foundry services, automotive technologies, and semiconductor manufacturing tools.
On the price performance front, INTC stock surged 255.3% over the past 52 weeks. The momentum has carried into 2026, with shares climbing 194.3% year-to-date (YTD), followed by another 12.3% jump during the last month alone.
On the valuation front, investors are pricing the stock at a premium. The stock is trading at 71.44 times forward-adjusted earnings and 9.05 times sales, placing both multiples well above industry benchmarks and the stock’s own five-year average.
Intel Surpasses Q2 Earnings
On July 23, Intel reported its Q2 FY2026 financial results, marking the seventh consecutive quarter in which it exceeded management’s financial expectations. Revenue grew 25.4% YOY to $16.13 billion, beating analyst estimates of $14.43 billion. It was the company’s strongest growth in 15 years.
Looking at individual segments, Client Computing revenue rose 13% YOY to $8.9 billion as the client TAM continued to hold up well despite broad component constraints and price inflation. Meanwhile, DCAI revenue surged 59% YOY to $6.3 billion, supported by strong demand across hyperscale and enterprise customers.
Intel Foundry also delivered meaningful growth, generating $5.8 billion in revenue, up 31% YOY. Profitability improved alongside the revenue gains. Non-GAAP gross margin reached 41.8%, approximately 280 basis points better than guidance, while non-GAAP net income came in at $2.2 billion versus a non-GAAP net loss of $441 million in the prior year’s period.
Furthermore, adjusted EPS amounted to $0.42, also largely surpassing Street expectations of $0.22. Cash generation provided another positive signal. Q2 operating cash flow reached $7 billion, while Intel exited the quarter with a strong liquidity position, including approximately $30 billion in cash and short-term investments.
For Q3 2026, Intel has guided revenue of $15.8 billion to $16.8 billion, adjusted EPS of $0.38, and a non-GAAP gross margin of approximately 42%. Turning to CapEx, strong customer demand signals have prompted the company to raise its 2026 outlook, with CapEx now expected to exceed $20 billion.
The guidance remains anchored in persistent demand for AI compute and ongoing infrastructure buildouts. Intel believes this demand will outpace the industry’s supply capacity in the near term, creating an important opportunity across its operations.
Meanwhile, analysts anticipate Q3 EPS to increase by 154.6% YOY to $0.28. For FY2026, earnings are expected to soar by 966.7% YOY to $1.04. Additionally, analysts project FY2027 EPS to grow 38.5% from the previous year to $1.44.
What Do Analysts Expect for Intel Stock?
Reitzes is not the only analyst taking a constructive view of Intel. Northland upgraded the stock to “Outperform” with a $120 price target, citing clear progress in the company’s turnaround. Tigress Financial also raised its price target on Intel to $145 from $118 while maintaining a “Buy” rating.
Wall Street has given INTC stock an overall “Moderate Buy” rating. Among 46 analysts covering the company, 12 rate the shares a “Strong Buy,” one assigns a “Moderate Buy,” 31 stick with “Hold,” while two call for a “Strong Sell.”
To that end, Intel’s average analyst price target of $114.58 represents potential upside of 5.5%, while the Street-High target of $200 suggests a gain of 84.2% from current levels.
On the date of publication, Aanchal Sugandh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com