UBS Group highlights $INTC 14A PDK as a key catalyst, raising the target price to $65.
UBS Group released a research report stating that $INTC exhibits resilient demand for personal computers (PCs), with significant growth in server CPU demand as well. In addition, the company has already raised prices by about 10%, and price increases are expected to continue throughout this year, particularly in the enterprise server segment.
UBS has slightly raised its first-quarter revenue forecast for the group from the previous $12.2 billion to $12.5 billion, while leaving its earnings-per-share forecast unchanged at $0.06. For the group's 2026–2028 revenue projections, the firm has increased estimates from $51.1 billion, $52.4 billion, and $56.1 billion to $53.1 billion, $55.1 billion, and $58.5 billion, respectively. Earnings-per-share forecasts have also been revised upward from the original $0.35, $0.60, and $0.92 to $0.44, $0.75, and $1.05, respectively.
UBS noted that Intel's foundry business is seeing improving prospects, particularly in the 14nm process. At the same time, it expects customers such as Google, Apple, AMD, and NVIDIA to sign foundry commitments this fall. In addition, the potential scenario of merging the Ohio wafer fab project with Musk's TeraFab also boosts confidence in the long-term outlook for the foundry business.
However, UBS remains skeptical about Intel's long-term earnings per share profitability. Even under an optimistic scenario, EPS is expected to exceed only about $3.50 by 2030. UBS believes that there is limited room for further upside in the stock price, and the key catalyst—the release of the 14A 1.0 PDK—has yet to materialize. It is expected that the stock price will still trend higher within this year.
UBS assigned a "Neutral" rating to Intel, with the price target raised from $51 to $65.