Intel Stock Surges 7% to 17-Month High After Upgrade, Boosted by New Chips and Production Facilities
Shares of Intel experienced a significant surge on Thursday, increasing by nearly 7% and reaching their highest level in 17 months. This surge came after Mizuho Securities upgraded its rating on the semiconductor maker’s stock to buy. Mizuho analysts cited the potential for increased revenue from upcoming chips and new production facilities as reasons for the upgrade.
In 2024, Intel plans to introduce new data center and artificial intelligence chips, which analysts believe will be one of the company’s most significant product launches in years. Additionally, Intel will be opening new chip-making facilities known as foundries. Automotive and semiconductor specialist Vijay Rakesh, leading the Mizuho analyst team, emphasized these developments in an investor note on Wednesday.
As a result of the upgrade, Mizuho raised its price target on Intel shares to US$50 from $37. The stock reached a high of $43.39, the highest since June 2022, and closed at $43.35 on Thursday, representing a 6.7% increase. Year-to-date, Intel shares have gained an impressive 64%.
Mizuho analysts stated, We believe Intel is lining up significant new server product launches and foundry customer announcements in the next six months. This positive outlook, combined with the upgrade, has led to an increase in the median price target provided by 44 analysts covering Intel. The new target is $38, up from $35.50 in October. According to LSEG data, the consensus recommendation on Intel stock remains hold.
While Intel enjoys market competition from prominent chip makers like Nvidia, Broadcom, AMD, and Samsung Electronics, this recent upgrade positions Intel favorably for further growth. As the company continues to unveil new products and expand its production capabilities, investors are optimistic about its future prospects.
In conclusion, Intel’s stock has experienced a substantial surge following an upgrade from Mizuho Securities. The upgrade, based on the anticipation of increased revenue from forthcoming chips and new production facilities, has propelled Intel shares to their highest level in 17 months. With the prospect of significant product launches and foundry expansions, Intel is well-positioned for continued success in the semiconductor market.