Intel (INTC) has been among the hottest technology stocks with a rally of 152% in the last 52 weeks. While the upside has been meaningful, there are ample catalysts for INTC stock in the next 12 to 24 months.
In a recent positive, Intel is set to work with a subsidiary of SoftBank (SFTBY) for making memory for artificial intelligence. The partnership is for the commercialization of Z-Angle memory that’s being touted as a “next-generation memory technology.” While the commercialization is due in fiscal 2029, the partnership underscores the focus on an innovation edge to drive growth in the coming years.
In other positive news, Intel CEO Lip-Bu Tan said that the company will be building graphics processing units to compete with the likes of Nvidia (NVDA) and AMD (AMD). This is another potential growth catalyst for the medium to long term.
About Intel Stock
Headquartered in Santa Clara, Intel is a developer, manufacturer, and seller of computing-related products and services globally. The company operates through three segments: CCG, DCAI, and Intel Foundry.
AI has been driving significant demand across the company’s product portfolio, with product diversification and innovation being the growth catalysts. Recently, the company has launched products on Intel 18A, which is the most advanced process node developed and manufactured in the U.S.
For FY25, Intel reported revenue of $52.9 billion with a gross margin of 34.8%. While CCG revenue declined by 3% on a year-on-year (YoY) basis, it was offset by 5% growth in DCAI revenue. For the same period, the company reported an operating cash flow of $9.7 billion.
With Intel indicating that demand is outpacing supply, the growth outlook is positive. Therefore, even with a rally of almost 150% in INTC stock in the last six months, the uptrend is likely to sustain.
Strong Q4 and an Optimistic Outlook
Last month, Intel reported Q4 numbers that beat estimates on the revenue and EPS front. However, beyond the headline numbers, there are other important points to note.
First, Intel ended FY25 with a cash buffer of $37.4 billion. This allows high financial flexibility for investments. For FY26, the company has committed $9.1 billion in capex that’s likely to support growth in 2027 and beyond.
Second, the management has indicated a stronger position in the consumer and enterprise notebooks with its Core Ultra Series 3 lineup. According to CEO Lip-Bu Tan, Intel is “on the path of 45% market share and profitability in both notebooks and desktops” over the next few years.
Besides this, Intel has already commenced shipping its first product built on Intel 18A. With Intel Foundry being offered to external customers, there is scope for top-line growth acceleration and segment margin improvement. Overall, AI-driven products are likely to be value creators in the coming years.
What Analysts Say About INTC Stock
Given the ratings of 44 analysts, INTC stock is a consensus “Hold.” While five analysts assign a “Strong Buy” rating to INTC, one analyst opines that the stock is a “Moderate Buy.” An overwhelming majority of 33 analysts believe that the stock is a “Hold.” Finally, on the bearish side, one and four analysts have a “Moderate Sell” and “Strong Sell” rating, respectively.
Based on these ratings, analysts have a mean price target of $44.74 currently, which would imply a downside potential of 8.4%. However, the most bullish price target of $66 suggests that INTC stock could rise as much as 35.8% from here.
Last month, UBS opined that Intel’s fundamentals “may be starting to improve.” Further, companies like Nvidia, Apple (AAPL), Alphabet (GOOG) (GOOGL), and Broadcom (AVGO) “may have engaged with Intel on its 14A manufacturing process.” This, coupled with demand from the data center and PC business, is likely to translate into growth and value creation. INTC stock therefore looks attractive even after a significant rally.
On the date of publication, Faisal Humayun Khan 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. For more information please view the Barchart Disclosure Policy here.
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