Oct 13 - Intel (NASDAQ:INTC) shares climbed about 2% on Monday morning trading after Mizuho raised its price target on the chipmaker to $39 from $23 while keeping a Neutral rating, according to a Monday note.
The brokerage said the new target reflects optimism around Intel's advanced packaging capabilities, which could generate about $1.5 billion in annual revenue starting from 2026 to 2027. Mizuho also forecasted that the company may gain an additional $4 billion a year by 2029 from stronger demand for CPUs linked to NVIDIA (NVDA).
Intel's stock has gained roughly 84% over the past six months, supported by new partnerships and investments. However, Mizuho cautioned that Intel still faces headwinds, including market share losses in servers and uncertainty around its AI chip roadmap.
Separately, Intel recently began high-volume production of its next-generation Panther Lake processors at its Arizona facilities. The chips, part of the Intel Core Ultra 3 series, are the first built on the firm's advanced 18A process.
The company also completed a $2 billion private share placement to SoftBank and continues to secure large-scale government and industry investments to strengthen its foundry business.
This article first appeared on GuruFocus.
