Mizuho Analyst Raises Intel (INTC) Target But Warns ’Core Problems Persist’ - What Investors Need to Know
Intel gets a price target boost from Mizuho's top analyst, but the celebration comes with major caveats.
The Bullish Signal
Mizuho just upped their Intel stock target, sending a positive signal to markets hungry for tech momentum. The adjustment reflects some improved metrics in Intel's recent performance.The Reality Check
Despite the target increase, the analyst's report highlights persistent fundamental challenges. Core business issues continue to plague the chipmaker's turnaround story.Market Reaction
Traders initially cheered the target bump, but savvy investors are looking beyond the headline number. The warning about underlying problems suggests this isn't the all-clear signal some hoped for.Another case of Wall Street analysts giving with one hand while taking away with the other—because why deliver straightforward guidance when you can create trading volatility instead?
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Why Rakesh Ups His Price Target
Rakesh said Intel’s advanced packaging segment could add about $1.5 billion in annual revenue starting between 2026 and 2027. He believes Intel is in a good spot to capture share as more chipmakers adopt advanced packaging for next-gen AI and data chips.
The analyst also pointed to Intel’s growing LINK with Nvidia. He estimates the Nvidia CPU ramp could lift Intel’s topline by another $4 billion per year by 2029, building on its current $50 billion revenue base.
Intel’s Challenges Still Run Deep
While partner investments could help improve sentiment, Rakesh warned that Intel still faces major hurdles. He said the company is losing share in servers, lacks a clear AI roadmap, and its 18A process may still depend on TSMC (TSM), which could pressure margins.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on two Buys, 27 Holds, and five Sells assigned in the past three months, as indicated by the graphic below. After a 55.16% rally in its share price over the past year, the average INTC price target of $27.98 per share implies a 23.80% downside risk.
