$INTC shares gained 4% yesterday. The market reacted to an optimistic outlook and the announcement of an acquisition in the quantum computing space. With Intel, you never know what it’ll get itself into next.
Pierre Ferragu of New Street Research recommends buying the shares and set a price target of $125. That’s, BTW, potential upside of around 38%.
He believes Intel could increase its server capacity by more than 50% in 2027, and its data center revenue could exceed Wall Street estimates. By 2030, he sees Intel’s server CPU sales reaching $50 billion in a total market worth more than $220 billion. Earnings per share could then reach $7.10. This year, they were just a dollar fifty.
Later that evening, after the market closed, Intel announced its acquisition of software company Classiq, whose platform is designed to make it easier to develop and scale quantum applications. But the shares aren’t reacting directly to the news. They’re slightly lower this morning.