Most desktop and laptop computers these days are mad with the Intel 7 processor lineup. But chip stock Intel (INTC) is having a tough time producing that many Intel 7 models any more, and is instead advising computer makers to start turning to the 18A lineup. This is leaving some concerned, but investors are quite pleased, based on the over 3.5% boost they gave Intel shares in Tuesday afternoon’s trading.
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Basically, the Intel 7 node handles a lot of Intel’s more “normal” processor lineup. The stuff geared toward consumer laptops and the like goes through that line. But the Intel 7 node is in short supply right now as it focuses on the server market. So Intel is advising buyers to start pivoting to the 18A node, which is likely to be more available. Intel noted that its 18A processors are “…built to ramp fast and at scale, bringing modern performance, efficiency, and AI ready features to everyday and commercial systems and giving our partners the ability to ship at high volume.”
This means that future laptops are also going to have to include things like premium displays and other such options to justify the greater expense. This also means that budget laptops are likely to be in short supply going forward. PC makers are left with a take-it-or-leave-it proposition, reports note, and a lot fewer budget systems out there.
Analyst Pivot
Meanwhile, Citi analyst Atif Malik—who has a five-star rating on TipRanks—recently brought out word about a new price target for Intel shares. It turned out to be quite a hike, too, as Malik raised the target from its previous $95 to $130.
The reason for the hike is connected to a “…new CPU total addressable market model” that suggests the server CPU market will hit $132 billion by 2030. This not only includes the updated CPU model, but also includes gains from Intel’s ASIC operations that are also gaining ground rapidly. Malik noted, “We are constructive on CPU demand as the industry moves to inference and agentic AI which need more CPUs.”
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on 11 Buys, 24 Holds and three Sells assigned in the past three months, as indicated by the graphic below. After a 408.56% rally in its share price over the past year, the average INTC price target of $87.09 per share implies 22.36% downside risk.
