INTC•INTC•Goldman Sachs launched coverage on Intel with a Neutral rating and $150 target, citing server CPU tailwinds and foundry upside but warning the stock’s 237.4% YTD surge has priced in most optimism. Intel’s chip division shows early AI-driven server demand gains yet remains far from a complete turnaround.
Goldman Sachs initiated coverage of Intel with a Neutral rating and assigned a 12-month price target of $150, implying about 13% upside from recent levels. The firm highlighted strong server CPU market trends and potential upside in Intel’s foundry segment but cautioned that much of this optimism is already reflected in the share price.
Intel’s shares have surged 237.4% year-to-date, driven by robust demand for AI-driven server processors and investor enthusiasm over manufacturing expansion. Consensus analyst estimates place the average 12-month price target at $96.07, suggesting nearly 28% downside from the prior close, indicating conflicting views on near-term valuation.
Goldman forecasts Intel’s advanced packaging revenue to reach $10 billion by 2030, with external wafer revenue set to accelerate by 2028 as the company scales its foundry operations. This growth is tied to rising demand from cloud service providers and AI chip makers seeking domestic semiconductor capacity.
Despite a constructive long-term outlook, Goldman identified Nvidia, Broadcom, and AMD as offering stronger revenue visibility and more attractive risk-reward profiles. The bank noted that these peers trade at valuations in line with or below Intel on 2030 P/E while maintaining more aggressive medium-term product roadmaps.
