10 AI Stocks on Market Radar

7. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 81

Intel Corporation (NASDAQ:INTC) is one of the 10 AI Stocks on Market Radar. On January 16, Jefferies analyst Blayne Curtis raised the price target on the stock to $45.00 (from $40.00) while maintaining a Hold rating. The firm is cautiously negative on INTC despite strong server demand, due to structural constraints.

The firm noted that Intel appears to benefit from robust server demand heading into 2026, but also faces capacity constraints that limit its ability to fully capitalize on it.

Intel has indicated its plans to shift Intel 7/10 capacity away from low-end PCs to legacy server products. Jefferies anticipates market weakness to begin in March, with PCs likely to be down by at least mid-single digits next year.

This decline is fueled by rising memory costs, which are likely to result in lower specifications and higher ASPs. This aligns with broader market expectations for a roughly 8% decline in PC volumes beginning in March.

Jefferies anticipates margins coming under pressure, particularly as Lunar Lake ramps and the early production ramp of the 18A process for Granite Rapids begins. Together, these two factors will likely dampen margins below 36%, slightly below current consensus expectations.

Altogether, we expect commentary on the full year to be relatively disappointing as tightness in capacity prevents fully monetizing GP servers, while PCs are weak and margins remain pressured throughout the balance of the year. Expect Capex to remain flattish to even up slightly with GR ramping and INTC working on competing in the packaging portion of the market.

Intel Corporation (NASDAQ:INTC) designs, manufactures, and sells advanced semiconductors, computer products, and technologies, delivering data storage, computer, networking, and communications platforms.