Intel Price Target Rises to $56 on 30% Data Center Growth Forecast
Morgan Stanley raised Intel’s price target to $56 from $41 on stronger server demand and lifted its 2027 EPS forecast from $0.97 to $1.34. The firm projects 30% year-over-year data center revenue growth to $21.8 billion in 2026 but retains an Equal-weight rating.
1. Price Target and Earnings Revision
Morgan Stanley raised its price target on Intel to $56 from $41, driven by stronger server pricing and volume, and boosted the 2027 EPS forecast from $0.97 to $1.34. The firm projects Intel’s data center revenue will grow by around 30% year-over-year to $21.8 billion in 2026.
2. Equal-weight Rating and Roadmap Concerns
Despite higher estimates, the firm maintained an Equal-weight rating, citing a weak server product roadmap and concerns over next-generation Diamond Rapids chip delays. Analysts note CEO comments on product shortcomings and view AMD’s Venice processor as a clear step forward.
3. Memory Stocks Preferred for AI Surge
The team expressed skepticism about Intel’s foundry ambitions, seeing a positive DCF outcome as remote, and recommended Micron and SanDisk as superior plays on CPU-driven AI demand. They highlighted tight data center memory supply and emerging long-term hyperscaler agreements as key catalysts through 2027.