Intel (INTC) Stock Forecast & Price Target

Intel's Foundry segment has achieved significant milestones with its 18A and 14A products, leading to an anticipated sequential revenue increase driven by higher volumes and an improved product mix. The Data Center AI (DCAI) segment has demonstrated robust growth, with a 15% sequential increase and a 9% annual increase in revenue, marking its strongest quarterly performance in a decade and generating $4.7 billion in revenue. Furthermore, Intel's custom ASIC business has reached an impressive annualized revenue run rate exceeding $1 billion in Q4, reflecting a 50% year-over-year growth, indicating a positive trajectory for the company amidst increasing demand in the server CPU market.

The financial outlook for Intel is adversely impacted by an elevated valuation and declining revenue estimates, driven by intensified competition in both core and non-core markets. Revenue guidance for the first quarter of 2026 indicates a significant sequential decline of approximately 11%, falling short of both prior estimates and consensus expectations, which suggests ongoing struggles in core segments. Additionally, flat to declining capital expenditures for 2026, coupled with a prioritization of internal supply to server markets, may hinder Intel's ability to effectively expand and adapt to changing industry dynamics.