UBS pointed out that Intel's 14A PDK is a key catalyst, raising the target price to $65

UBS published a research report stating that Intel's (INTC.US) demand for personal computers (PC) is resilient, and server CPU demand has also significantly increased. Additionally, the company has raised prices by about 10%, and it is expected that there will be a trend of further price increases within this year, especially in the enterprise server sector.

The firm has slightly raised its first-quarter revenue forecast for the group from the original USD 12.2 billion to USD 12.5 billion, while maintaining the earnings per share forecast at USD 0.06. The revenue forecasts for the group from 2026 to 2028 have been raised from USD 51.1 billion, USD 52.4 billion, and USD 56.1 billion to USD 53.1 billion, USD 55.1 billion, and USD 58.5 billion, respectively. The earnings per share forecasts have also been raised from the original USD 0.35, USD 0.60, and USD 0.92 to USD 0.44, USD 0.75, and USD 1.05.

The firm pointed out that Intel's foundry business outlook is improving, particularly in the 14A process. At the same time, it is expected that clients such as Google, Apple (AAPL.US), AMD (AMD.US), and NVIDIA (NVDA.US) will sign foundry commitments this fall. Additionally, the potential scenario of merging the Ohio wafer fab project with Musk's TeraFab also adds confidence to the long-term outlook of the foundry business.

However, UBS remains concerned about Intel's long-term earnings per share capability. Even in an optimistic scenario, it is expected that earnings per share will struggle to exceed approximately USD 3.5 by 2030. UBS believes that there is limited further upside potential for the stock price, and the key catalyst—the release of the 14A 1.0 PDK—has not yet arrived, with expectations that the stock price will still trend higher within this year.

The firm has given Intel a "Neutral" rating; the target price has been raised from USD 51 to USD 65