Home / Business and Economy / Intel Stock Poised for Massive 100% Surge, Says Top Analyst
Intel Stock Poised for Massive 100% Surge, Says Top Analyst
19 Sep
Summary
- Intel stock may surge over 100% to $200, according to Melius Research.
- The bold target hinges on separate valuations of Intel's product and foundry businesses.
- Key milestones include high-volume 14A process commitments and increased product earnings.
A prominent research firm, Melius Research, has issued a bullish forecast for Intel, suggesting its stock could climb by approximately 100% to reach $200 within two years. This valuation significantly exceeds most other Wall Street predictions and comes ahead of Intel's upcoming earnings report.
Analyst Ben Reitzes, a seasoned technology sector observer, bases this aggressive target on a dual-pronged valuation of Intel's core operations. He estimates that Intel's product business, which supplies processors for PCs and servers, and its Intel Foundry services, which manufacture chips for external clients, could each command a valuation exceeding $80 per share independently.
Achieving this $200 price point depends critically on two future developments. Intel must secure substantial, high-volume orders for its next-generation 14A manufacturing process from major clients like Apple and Tesla, with production scaling by 2028. Simultaneously, the company's product division needs to successfully raise prices for AI-capable PCs and maintain robust server chip demand, driving product earnings above $4 per share.
Evidence of internal conviction in this ambitious plan is emerging. CEO Lip-Bu Tan made a notable personal investment, purchasing approximately $10 million in stock at $95 per share in August. Furthermore, the company successfully raised about $20 billion through a share sale at the same price point, specifically to finance its extensive factory expansion efforts.
