KGI Securities upgrades Intel to Outperform from Neutral, sets price target at $95

Intel (INTC) shares fell 20% in a month after weak Q4 guidance, citing PC slump and supply constraints. Analysts see 27.8% upside to $117.71, with bullish target at $155. DCAI revenue rose 78% YoY, but PC revenue slipped 5%. Management expects server CPU growth above 30% in 2026-2027. AMD and NVIDIA also dipped but less sharply.

Intel (INTC) shares fell 24% premarket after guiding Q4 revenue to $15B-$16B, below analysts' $17.1B estimate. Client revenue is expected to drop over 20% from Q3, while data center revenue is projected to rise by mid-teens. The company also reported a $300M impact from an Israel fab explosion. Non-GAAP EPS is guided at $0.25, below the $0.43 consensus.

Evercore ISI Group kept its Outperform rating on Intel but reduced its price target to $131 from $133, a 1.5% decrease. This implies a 42.3% upside from Intel's Oct 29 close of $92.07. Recent analyst price targets for Intel range from $90 to $140.

Intel (INTC) reported Q3 revenue of $16.5B, EPS of $0.52, and gross margin of 44.1%. Data Center and AI sales rose to $7.3B, the highest in 15 years. However, Q4 guidance was weak, with expected revenue of $15B-$16B, EPS of $0.25, and gross margin of 38%, due to a factory shutdown and PC market weakness. The company anticipates a 20% drop in client computing sales but sees long-term growth in server CPU demand.

Intel (INTC) stock dropped 26% after its Q4 revenue forecast of $15B-$16B missed estimates of $17B, with EPS of $0.25 below expectations. Despite strong Q3 earnings and data center revenue growth, PC shipment declines and factory issues impacted outlook. Analysts cut price targets, and tech stocks including Dell (DELL) and HP (HPQ) also fell.

Intel (INTC) shares dropped 25% premarket Friday after Q4 guidance missed estimates, trading below its 200-day moving average of $86.78. The news puts focus on ETFs with significant exposure to the stock.