Intel (INTC) raises price list amidst CPU supply shortage...stock price targets $145 for counterattack

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Intel (INTC) stock price has settled above the $120 mark. Strong demand for server processors Xeon and the smooth progress of the next-generation 18A process acted as positive factors. Wall Street raised the target price to $145, fueling expectations for an earnings turnaround.

According to FXLeaders, a foreign exchange and financial media outlet, on September 24 (local time), US investment bank Tigress Financial raised Intel's target stock price from the previous $118 to $145. The reasons cited for the upgrade include expanding demand for server Xeon chips, progress in the 18A manufacturing process, and increased foundry order opportunities. Northland also upgraded its investment opinion to 'Outperform' due to the shortage of server central processing units (CPUs) and the momentum for an earnings rebound.

Price-setting power is also emerging in the core PC processor business. News that Intel would increase PC processor prices by approximately 10% has heightened expectations for margin defense. CEO Lip-Bu Tan expressed confidence in business recovery, citing ongoing CPU supply constraints and the memory market environment.

The execution capabilities of the foundry division are also strongly supporting the stock price increase. Process achievements following the introduction of ASML's next-generation High-NA EUV equipment have become visible. Potential foundry contract opportunities, such as discussions about memory production collaboration with SK Hynix utilizing the Ohio fab site, are also considered positive factors.

The macroeconomic environment is also favorable to technology stocks. Supply concerns related to the Strait of Hormuz have eased, causing West Texas Intermediate (WTI) crude oil prices to fall below the $100 mark, settling in the mid-$90s. Oil price stability and expectations for a US-China summit are stimulating risk asset preference, drawing attention to whether Intel will reach its $145 target stock price.

[Article Summary]

-Tigress Financial raised Intel's (INTC) target price to $145, citing surging Xeon demand and 18A process progress.

-The planned 10% increase in PC processor prices and the shortage of server CPUs are boosting expectations for margin improvement.

-Foundry achievements based on High-NA EUV and stable oil prices combined to support the stock price holding at $120.

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