Wall Street Warms to Intel as Foundry Gains Traction Amid AI Boom
Intel's stock is experiencing a renaissance after years of skepticism, with Citigroup and TD Cowen leading a wave of analyst upgrades. The chipmaker's server CPU demand has reportedly exhausted 2026 capacity, while its 18A manufacturing process achieves 60% yields—a critical milestone for reclaiming process leadership.
The foundry business emerges as the dark horse, positioning Intel to capture overflow AI chip orders from cloud giants like Alphabet and Microsoft as TSMC struggles with capacity constraints. Panther Lake mobile processors enter production this month, though desktop CPUs continue losing ground to AMD's relentless competition.
Market sentiment remains bifurcated—the stock's 180% rally from 2025 lows contrasts with Wall Street's lingering caution. The $39.46 average price target suggests institutional investors still underestimate Intel's manufacturing turnaround and AI-driven foundry potential.
