Intel Rebounds 1.4% on AI Chip Demand as DA Davidson Sets $45 Target
DA Davidson initiated coverage of Intel with a Neutral rating and $45 price forecast, labeling the company a “show me” story despite noting operational progress. Strong AI-driven chip demand—global chip sales reached $791.7B in 2025 with 26% growth forecast for 2026—supported a 1.44% rebound to $47.16.
1. Analyst Coverage and Price Forecast
DA Davidson initiated coverage of Intel with a Neutral rating and a $45 price forecast, noting meaningful progress across manufacturing and design but branding Intel a “show me” story that requires sustained execution to justify its valuation.
2. AI-driven Sector Tailwinds
Renewed optimism in the semiconductor sector stemmed from Big Tech’s aggressive AI spending plans—Alphabet plans $175B–$185B in capex while Amazon earmarks $200B—and industry sales reached $791.7B in 2025 with a projected 26% rise in 2026, underpinning demand for Intel’s processors.
3. Technical Setup and Price Action
Intel shares climbed 1.44% to $47.16, trading above their 50-day and 100-day SMAs but 2.6% below the 20-day SMA; the RSI is neutral at 50.2 and MACD shows bearish pressure, with key support at $42.50 and resistance at $51.50.