Intel is leading chip gains. A top analyst sees the stock hitting $200 in two years
Intel could see its shares roughly double to $200, particularly as it reportedly fields another deal with a prominent chipmaker, according to Melius Research. The research firm has a buy rating on the chip manufacturer. It has a $165 price target on shares, implying about 70% upside from Tuesday’s close. However, Melius analyst Ben Reitzes sees Intel trading as high as $200 per share in the next two years. That’s because the company could be set to rally on foundry agreements with Apple and other prominent names, he noted. He highlighted Intel 14A, the company’s semiconductor manufacturing process node, which is used to build high-performance chips. “If 14A takes on high-volume manufacturing in 2028 with Apple, Tesla and one other hyperscaler committed … one could argue it can exit the year worthy of a 4x multiple … or about $100.,” the analyst said. “If server CPU pricing and the agentic CPU attach hold through 2028 and the AI PC mix keeps client [average selling prices] rising, products earnings of $4+ are the natural outcome,” Reitzes added. “Add the two and the stock is $200 within two years, roughly a doubling from here.” The analyst’s comments come after Reuters reported Wednesday that Intel is considering a deal to help SK Hynix manufacture its memory chips in the U.S. for the first time. Under the agreement, the South Korean semiconductor firm could lease part of Intel’s chipmaking facility in Ohio, source familiar with the matter told Reuters. Intel was last up more than 4% on the day. The iShares Semiconductor ETF (SOXX) ticked up nearly 2% over the same period. Shares of Intel have gained about 300% in the past 12 months. INTC 1Y mountain Intel is up about 304% over the past 12 months. The rally is unlikely to slow down anytime soon, with structural tailwinds likely driving more upside to the stock, per Reitzes. “With one of the best CEOs in the world and great secular tailwinds, we see the execution discount narrowing over the next few years,” the analyst wrote. Melius’ call goes against consensus on the Street. Of the 50 analysts covering Intel, just 15 have a buy or strong buy on the stock, while 33 have a hold rating on it, LSEG data shows.
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