Intel Corp. shares have surged 54% this year, but Mizuho analyst Vijay Rakesh sees multiple catalysts that could drive them even higher.
He upgraded the stock to buy from neutral late Wednesday, cheering opportunities related to new server product launches and the prospect of further announcements related to Intel’s
INTC,
foundry business.
2024 could prove “one of the most prolific product-launch years” for Intel, especially as recent years have been more muted, he said, and the company’s Sierra Forest product should be “very competitive” in the data-center and enterprise-storage server markets, while Granite Rapids also offers opportunity.
Read: Intel board member buys $2.5 million in stock — and has a ‘solid’ track record
Intel also stands to benefit from an improving landscape for personal computers, and Rakesh thinks the company could gain market share.
Then there also is the opportunity for Intel to gain traction in artificial intelligence. The company’s “late foray into high-margin AI with Gaudi2/3 [expected next year] could be an upside high-margin call option as it could
stand to gain share as an under-the-radar AI play” relative to Nvidia Corp.
NVDA,
according to Rakesh.
He’ll be looking for updates around the company’s foundry business, as Intel “could start to close the ‘decade-long’ manufacturing technology gap with peers and foundries.”
Further, Intel has indicated that it aims to spin off its programmable solutions group eventually, and Rakesh sees that move as a way for the company to unlock shareholder value.
He upped his price target to $50 from $37 in Wednesday’s report.
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