Shares of Intel Corp. (NASDAQ:INTC) could nearly double to $200, driven by foundry deals and stronger product earnings, according to an analyst at Melius Research.
The firm maintained a Buy rating on the chip manufacturer, with a price target of $165 per share. However, Melius analyst Ben Reitzes believes Intel’s shares could reach as high as $200 within the next two years, CNBC reported.
Reitzes suggested that this potential surge could be due to Intel’s prospective foundry agreements with Apple Inc. (NASDAQ:AAPL) and other significant players. He highlighted Intel’s 14A, the company’s chip manufacturing process node used to build high-performance semiconductors, as a crucial factor.
Reitzes said, “If 14A takes on high-volume manufacturing in 2028 with Apple, Tesla Inc. (NASDAQ:TSLA) and one other hyperscaler committed… one could argue it can exit the year worthy of a 4x multiple … or about $100.”
He added that if server CPU pricing and agentic CPU attach remain strong through 2028, while the AI PC mix continues to lift client average selling prices, product earnings of more than $4 could naturally follow. “Add the two and the stock is $200 within two years, roughly a doubling from here,” Reitzes concluded.
Reitzes expects the stock’s rally to continue, citing structural tailwinds and strong leadership of CEO Lip-Bu Tan, which could drive further gains.
Intel Gains From AI Chip Demand
Reitzes’ projection came on the heels of Intel reportedly being in talks with SK Hynix Inc. (NASDAQ:SKHY) to make memory chips at Intel’s planned Ohio facility. This move comes as part of the U.S. government’s push for companies to expand domestic production as AI demand surges.
Intel declined to comment on media speculation about future business arrangements but noted that it was “committed to Ohio” and continues its investments to accelerate the site readiness. Reportedly, SK Hynix could lease part of Intel’s facility or form a joint venture with Intel and cloud firms. SK Hynix clarified that "nothing has been finalized regarding cooperation with any specific companies."
Intel’s AI Turnaround Gains Momentum
Intel’s partnership with Terafab, a $25 billion chip manufacturing project involving Tesla and Space Exploration Technologies Corp (NASDAQ:SPCX), makes Intel its primary foundry provider and strengthens its AI-focused turnaround, according to Tigress Financial Partners. Analyst Ivan Feinseth maintained a Buy rating and raised Intel’s price target to $145 from $118 citing catalysts across data-center computing, AI PCs, advanced semiconductor manufacturing, and foundry services.
The analyst said growing demand for AI inference, agentic computing, data orchestration, networking and enterprise workloads is increasing the role of CPUs alongside GPUs, benefiting Intel’s Xeon business. He said the Xeon 6 and 18A-based Xeon 6+ platforms position Intel to capitalize on this demand.
Benzinga’s Edge Rankings place Intel in the 99th percentile for momentum. Benzinga’s screener allows you to compare INTC’s performance with its peers.
INTC Price Action: Year-to-date, Intel’s stock has surged about 173.85%, as per Benzinga Pro. On Wednesday, it closed 4.03% higher at $101.05. The stock rose about 3.19% to $104.27 premarket on Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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