Melius Research projects Intel could double in value to $200, contingent on securing major foundry clients and scaling next-generation chip production.
Melius Research reiterated a Buy with a $165 target and outlined a $200 path, while the CEO bought $10M of stock and revenues rose 25%, but execution risks remain.
SK Hynix reportedly might lease Intel's Ohio plant but denied that any matters have been determined, leaving the outcome uncertain.
Apple was named as a possible future Intel 14A foundry customer, but this is speculative and unconfirmed.
Tesla was mentioned as a potential Intel 14A foundry client, but the relationship is not established.
Melius Research has issued a bullish $165 price target for Intel, outlining a potential path to $200 by 2028. The firm's thesis hinges on the successful scaling of Intel's 14A foundry process and the potential for independent valuation of its design and manufacturing arms.
The firm values Intel's product design business and its foundry manufacturing arm separately, suggesting each could be worth over $80 per share if execution targets are met.
The primary risks include the failure to secure major foundry customers for the 14A process, execution delays, and the challenge of maintaining profitability while scaling manufacturing.