Deutsche Bank Lifts Intel Price Target to $100 on Foundry, Apple Deal
Deutsche Bank raised Intel’s price target to $100 from $63 after the company shifted focus to expanding its foundry services and AI server CPU lineup under new leadership. Intel also secured a preliminary agreement to manufacture Apple chips on its advanced 18A node, reinforcing foundry optimism.
1. Price Target Increase by Deutsche Bank
Deutsche Bank boosted its target for Intel shares from $63 to $100, signaling improved confidence in the company’s revenue trajectory and cost controls. The new target remains below current market valuation, reflecting cautious optimism about sustainable margin expansion.
2. Strategic Pivot Toward Foundry and AI
Under CEO Lip-Bu Tan, Intel is reallocating capital to its foundry unit and accelerating development of AI server CPUs, supported by recent CHIPS Act grant conversions. This strategic realignment aims to restore competitiveness after prior execution setbacks.
3. Preliminary Apple Chip Manufacturing Deal
Intel signed a preliminary agreement to produce select Apple chips using its cutting-edge 18A process node, marking a high-profile entry into third-party foundry services. Analysts view this as validation of Intel’s advanced process roadmap and a potential multi-year revenue stream.
4. Investor Sentiment and Outlook
The combination of a higher price target, a clear strategic refocus, and the Apple partnership has bolstered investor confidence, though concerns persist about Intel’s ability to scale 18A production. Stakeholders will watch upcoming manufacturing milestones and customer commitments for delivery proof.