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Jefferies Raises Intel (INTC) Price Target to $45 but Cites Structural Constraints

Intel Corporation (NASDAQ:INTC) is one of the 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.

While we acknowledge the risk and potential of INTC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than INTC and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT:  11 AI Stocks Analysts Are Watching Closely and 10 AI Stocks Making Waves on Wall Street

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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