Susquehanna Raises Intel’s Price Target to $65: Is the Struggling Chipmaker Finally Turning the Corner?

Why It Matters

The target lift signals that analysts see Intel’s data‑center and AI initiatives gaining traction, which could reshape investor sentiment and competitive dynamics in the high‑performance computing market.

Key Takeaways

• Susquehanna lifts Intel target to $65, keeping neutral stance.
• Forward P/E remains ~122× despite 77% YTD stock gain.
• Data‑center revenue expected to rise, offsetting PC market weakness.
• Intel forecasts Q1 2026 revenue $11.7‑$12.7 bn, EPS near breakeven.
• CEO highlights 18A process as U.S.-made AI‑ready CPU milestone.

Pulse Analysis

Intel’s stock has surged more than three‑quarters this year, prompting analysts to reassess its upside potential. Susquehanna’s decision to raise the price target to $65, while still neutral, reflects a nuanced view: the market acknowledges the company’s recent execution gains, particularly in its data‑center segment, but remains cautious about the lofty valuation implied by a forward price‑to‑earnings multiple north of 120. This balance highlights the tension between short‑term earnings momentum and long‑term growth expectations in a sector dominated by rapid AI‑driven demand.

The data‑center and AI revenue streams are the primary engines of Intel’s turnaround. In Q4 2025, the segment generated $4.74 billion, a 9% year‑over‑year increase, while the client‑computing division fell 7%. Intel’s roadmap now emphasizes the 18A process node—the most advanced U.S.-based technology—positioning the company to compete with AMD’s Zen and Nvidia’s GPU offerings for AI workloads. However, supply constraints remain a near‑term headwind, with the firm forecasting Q1 2026 revenue of $11.7‑$12.7 billion and non‑GAAP EPS hovering around breakeven. The guidance suggests modest growth, but the strategic focus on AI‑ready CPUs could unlock higher margins if volume ramps.

For investors, the upgraded target underscores a cautious optimism that hinges on execution rather than speculative hype. While the stock’s rally has already priced in much of the anticipated recovery, a stronger-than-expected Q1 report could trigger a re‑rating upgrade and further price appreciation. Conversely, continued weakness in PC OEM shipments or prolonged supply bottlenecks could dampen momentum. Overall, Intel’s ability to translate its advanced process technology into market‑winning AI products will be the decisive factor shaping its valuation trajectory over the next 12‑18 months.