Morgan Stanley (MS) has increased its price target for Intel (INTC) from $41 to $56, reflecting optimism in the stock’s outlook. However, the Wall Street firm still views memory chip producers such as Micron (MU) and SanDisk (SNDK) as better risk-reward options for investors seeking exposure to AI and memory chip producers.
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Forget margin or options. Here's how the pros trade SNDKDespite the upward price revision for Intel, Joseph Moore, the managing director of Morgan Stanley, has retained his equal-weight rating on INTC. He has also reiterated the consensus ‘Hold’ rating and maintained a possible downside of about 14.88%. Meanwhile, the stock is down more than 3.9% at the time of writing, reflecting bearish momentum and pressure.
Upward Revision on Intel Earnings Outlook
To support its price boost, Morgan Stanley said that Intel could see higher earnings and stronger server demand. Led by Moore, the bank’s team has raised Intel’s 2027 earnings-per-share estimates from $0.97 to $1.34. The adjustment stems mainly from expectations of stronger server chip pricing and higher shipment volumes. The new projections sit about 20% above the current Wall Street consensus for both 2026 and 2027.
The bank also expects Intel’s data center business to deliver about 30% year-over-year revenue growth in 2026, reaching approximately $21.8 billion. This outlook aligns with the broader view that CPUs are gaining more traction in AI infrastructure. Over the long term, Intel’s growth rate is also projected to stay in the 30-40% range, above historical averages, but still below the growth seen in GPUs.
Analyst Flags Server Chip Concerns Amid Increased Competition
Morgan Stanley maintained its equal-weight rating on Intel, citing concerns about the company’s server chip roadmap. In particular, analysts pointed to challenges with the upcoming Diamond Rapids processor and compared its outlook with AMD’s (AMD) Venice chip, which they view as a stronger competitor. In addition, they expressed doubts about Intel’s foundry business and do not expect it to deliver strong value under a discounted cash flow scenario.
For AMD, Morgan Stanley has also maintained its equal-weight rating and a $255 price target. The firm said AMD could gain more share in server CPUs over time. However, it noted that similar expectations in the past have not always led to stock gains. Because of this, analysts believe AMD’s GPU business remains the primary driver of its performance.
Is Intel a Strong Buy Right Now?
According to analysts tracked by TipRanks, Intel (INTC) carries a “Hold” rating, with a 12-month average price target of about $54, implying a roughly 16% downside. Among 33 Wall Street analysts, 6 rate it a Buy, 23 a Hold, and 4 a Sell. For more information, investors can track INTC’s ratings, price targets, and performance on the TipRanks Stocks Comparison Center.
