Lynx Equity has increased its price target to $70, citing strong utilization rates at older process nodes and the potential for performance to exceed seasonal norms in upcoming quarters. Intel shares climbed approximately 8% on Wednesday, driven by positive analyst commentary and a broad rally in technology stocks. Analyst KC Rajkumar indicated that the chipmaker appears to have resolved customer wafer supply issues that had negatively impacted its first-quarter outlook three months prior. The report suggests that unmet demand could persist over the next several quarters. Activity at Intel's 7-nanometer and 14-nanometer process nodes appears robust, with these older production lines operating at full capacity. Rajkumar added that the supply gap could reach about 50% of current demand. The analyst hinted that Intel's first-quarter results may surpass the midpoint of its revenue guidance. Lynx Equity raised its price target on the stock from $65 to $70, applying a higher price-to-sales multiple of 6 times, compared to a previous multiple of 5 times. The firm noted Intel's recent improvements in execution and long-term potential. The analyst also questioned Intel's recent repurchase of a 49% stake in its Irish wafer fab, speculating whether an external customer might be involved.
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