Home / Business and Economy / Intel Stock Sees Balanced Risk/Reward: JPMorgan Upgrade
Intel Stock Sees Balanced Risk/Reward: JPMorgan Upgrade
19 Oct
Summary
- JPMorgan upgrades Intel, citing a more balanced risk/reward profile.
- Intel's server and PC CPU market share has significantly declined.
- Analyst expects positive EPS revisions due to AI workloads and supply chain.
JPMorgan has upgraded Intel to a Neutral rating, citing a more balanced risk/reward profile for the stock as it approaches the bank's $85 price target. This adjustment follows a significant pullback in Intel's share price.
Analyst Harlan Sur noted that Intel's server x86 CPU revenue share has fallen from 77% to 53% since November 2022. PC CPU share has also dropped from 81% to 68%. Sur anticipates further share losses in the near term, particularly in server CPUs.
Despite challenges, Intel shows progress in foundry operations, with strong inroads in yields and customer engagements. However, external foundry revenue remains significantly lower than competitors like TSMC.
JPMorgan forecasts positive earnings per share revisions through 2027, driven by the growth of CPU-intensive agentic AI workloads and a tight supply chain for advanced silicon. The bank will closely watch Intel's data center roadmaps and AI compute strategy.
