TD Cowen Lifts Intel (INTC) Price Target, Keeps Hold Rating

Intel Corporation (NASDAQ:INTC) is one of the 10 Best Performing AI Stocks to Buy. On April 9, TD Cowen increased its price target on Intel Corporation (NASDAQ:INTC) from $50 to $60 and kept its Hold rating on the stock.

Analyst Joshua Buchalter noted that Intel Corporation (NASDAQ:INTC) is in a strong position to benefit in the near term from the changing demand for server CPUs and shortages because it is not dependent on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) for capacity. TD Cowen noted that although Intel Corporation (NASDAQ:INTC) has outsourced some PC components and tiles to Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), its server CPU production is largely done in-house.

TD Cowen Lifts Intel (INTC) Price Target, Keeps Hold Rating

Intel Corp.’s headquarters, the Robert Noyce Building in Santa Clara, California. Photo from Intel Corp website

The research firm added that Intel Corporation (NASDAQ:INTC) may capture additional server demand thanks to insulation from Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) bottlenecks. TD Cowen pointed out that this depends on the company’s ability to produce more advanced node parts and on customer demand, which has recently leaned more toward older 10/7 generation Intel Corporation (NASDAQ:INTC) products.

Additionally, TD Cowen noted that Intel Corporation (NASDAQ:INTC) is trading at about 63 times its expected EPS for 2027. While the firm sees some recent progress, it still finds the stock’s valuation difficult to justify.

Intel Corporation (NASDAQ:INTC) is an American company that manufactures central processing units (CPUs) and semiconductors.

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