Intel Could Double Toward $200 as Foundry Hopes Build, Melius Analyst Says

Intel could rise toward $200 per share over the next two years if its foundry business wins major customers and its core semiconductor operations maintain momentum, according to Melius Research.

Melius has a buy rating on Intel and a $165 price target, which implies roughly 70% upside from Tuesday’s close. Analyst Ben Reitzes, however, sees a potential path to $200 as the company benefits from possible foundry agreements with Apple and other high-profile customers.

Reitzes highlighted Intel 14A, the company’s advanced semiconductor manufacturing process node designed for high-performance chips. He argued that if 14A reaches high-volume manufacturing in 2028 with Apple, Tesla and another hyperscale customer committed, Intel’s foundry business could help support a valuation of about $100 per share.

He also pointed to Intel’s server CPU business and the growing AI PC market. If server CPU pricing remains firm, demand for agentic AI-capable CPUs holds up through 2028, and AI PC adoption keeps average selling prices rising, Reitzes said product earnings above $4 per share could be achievable. Combined with the foundry opportunity, he believes Intel could reach $200 within two years.

The outlook follows a Reuters report that Intel is considering an arrangement to help SK Hynix manufacture memory chips in the U.S. for the first time. Under the potential deal, the South Korean chipmaker could lease part of Intel’s semiconductor manufacturing facility in Ohio, a source familiar with the matter told Reuters.

Intel shares were last up more than 4% on the day, while the iShares Semiconductor ETF rose nearly 2%. Intel has gained about 300% over the past 12 months.

Reitzes expects the rally to have further room to run, citing structural tailwinds and improving confidence in Intel’s execution. Melius has argued that the market’s skepticism toward the company could ease over the next few years as its strategy gains traction.

The bullish call remains more optimistic than the broader analyst view. Among 50 analysts covering Intel, 15 rate the stock a buy or strong buy, while 33 have a hold rating, according to LSEG data.

Source link