Intel (INTC) Stock Forecast & Price Target

Intel is supported by strong demand in its Data Center and AI infrastructure businesses, where server CPU units are expected to grow more than 30% in both '26 and '27 and revenue rose 17% Q/Q and nearly 80% Y/Y on increased server supply. Its foundry turnaround is gaining credibility as Intel 3 and 18A costs declined, operating losses narrowed by about $236M Q/Q, and 18A yields reached industry-standard levels while customer engagement broadened across 18A-P, 14A, and advanced packaging. Disciplined spending and improved gross margin also drove better-than-expected operating leverage and EPS, while supply-chain re-shoring could further support capital investment and premium domestic fab pricing.

Intel is facing a negative fundamental setup because strong DCAI momentum is being offset by a severe PC inventory correction, with management now expecting PC TAM down about 12% in ’26 and another 10% in ’27. Near-term profitability is also under pressure, as 4Q guidance points to revenue of $15B to $16B, gross margin around 38% to 37.1%, and EPS near $0.25, while a one-time Fab 28 disruption adds roughly a 200 bps headwind. Longer term, the turnaround in Intel Foundry and product competitiveness remains uncertain amid high capex, limited near-term free cash flow, and supply constraints that prevent Intel from fully capturing demand.