Intel’s Turnaround Could Rewrite the Stock’s Story

Quick Read

• Intel (INTC) plunged 29% in one day on weak guidance, yet the 24/7 Wall St. model still sees a $77 target, implying 39% upside.

• Lip-Bu Tan sees the server CPU market growing from $40 billion to more than $200 billion, and Oracle and NVIDIA have adopted Xeon.

• Data Center and AI revenue jumped 78% last quarter, Intel’s strongest data center growth in 15 years, even as the market prices in PC weakness.

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Intel (NASDAQ:INTC) just posted a steep one-week fall. The selloff has left the share price well below what the fundamentals support.

The 24/7 Wall St. price target for Intel sits at $77.29, measured against a model reference price of $55.55. That works out to 39.1% upside, and the model gives the stock a buy rating at high confidence.

24/7 Wall St. Price Target Summary

The market is pricing in a weak PC market and a heavy 2027 spending cycle. Meanwhile, Data Center and AI revenue grew 78% last quarter, which was Intel’s strongest data center growth in 15 years. My model looks past the next two quarters to the earnings power that chief executive Lip-Bu Tan is building.

A 29% One-Day Plunge Wiped Out Months of Gains

Shares fell 29% on October 30, according to the WSJ. Over the past week the stock is down 42.9%, and over the past month it has lost 53.05%, trading near $54.55 midday. Even so, Intel is still up 47.83% year to date. Its 52-week range runs from $32.89 to $142.35.

The third quarter itself was solid. Revenue rose 20.95% to $16.51 billion, and non-GAAP EPS came in at $0.52 against a $0.40 consensus. The guidance did the damage.

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