Morgan Stanley Raises Intel Target to $41, Flags Foundry Supply Constraints
Morgan Stanley raised Intel’s price target to $41 from $38 and maintained an Equal Weight rating, citing constraining supply limitations in the first quarter that could challenge foundry execution and operational consistency. Intel’s Q4 revenue was $13.7B with a 37.9% gross margin and $0.15 EPS, generating $2.2B free cash flow.
1. Morgan Stanley Raises Target
Morgan Stanley increased Intel’s price target to $41 from $38 while maintaining an Equal Weight rating, reflecting confidence in the company’s data-centric pivot despite near-term challenges.
2. Foundry Supply Constraints Weigh On Q1
The firm flagged meaningful supply limitations in the first quarter that could challenge Intel’s foundry execution, potentially affecting customer confidence and operational consistency in chip manufacturing.
3. Strong Q4 Results Support Stability
Intel posted Q4 revenue of $13.7 billion, a 37.9% gross margin and $0.15 EPS, generating $2.2 billion in free cash flow, marking the fifth consecutive quarter of revenue above guidance.