Morgan Stanley Raises Intel Target to $56, Prefers Micron and SanDisk
Morgan Stanley raised Intel’s target to $56 and 2027 EPS to $1.34, forecasting 30% data center revenue growth to $21.8B but retaining an Equal-weight rating. MS named Micron and SanDisk Overweight for CPU memory and rated Apple Overweight with a $315 price target and 1–2% Q1 upside.
1. Intel Price Target and Earnings Upgrade
Morgan Stanley raised Intel’s price target to $56 from $41 and lifted its 2027 EPS estimate to $1.34 per share, reflecting higher server pricing and volumes. The firm projects data center revenue growth of around 30% year-over-year to $21.8 billion in 2026.
2. Equal-weight Rating and Roadmap Concerns
Despite the target increase, the firm retained an Equal-weight rating on Intel, citing a weak server product roadmap and doubts over next-generation Diamond Rapids performance and foundry ambitions. Analysts contrasted Intel’s challenges with AMD’s Venice processor leadership.
3. Memory Stocks as Preferred AI Play
The team named Micron and SanDisk Overweight as the preferred way to play AI-driven CPU demand, highlighting tight data center supply and emerging long-term hyperscaler supply agreements through 2027 as key catalysts. Memory stocks are seen offering superior risk-reward relative to CPUs.
4. Apple Rated Overweight with a $315 Target
Morgan Stanley rated Apple Overweight with a $315 price target, projecting modest 1–2% upside in the March quarter and FY27 EPS of $9.76. Catalysts include share gains in iPhone, Mac, Services, a potential Siri redesign at the Worldwide Developers Conference, and a fall foldable iPhone launch.