This article first appeared on GuruFocus.
Intel ( INTC ) stock is in focus after Mizuho analyst Vijay Rakesh lowered his price target to $92 from $109 while keeping a Hold view on the shares.
Rakesh said Intel could benefit from rising demand for processors used in artificial intelligence inference. He expects the balance between CPU and GPU workloads to improve over time as agentic AI expands, potentially supporting tighter CPU supply through 2027.
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The analyst also sees a longer-term opportunity in Intel's manufacturing operations. He expects advanced packaging revenue to reach about $3.5 billion by 2029, with external foundry activity also potentially reaching that level as the company advances its 14A process.
Still, near-term profitability remains a concern. Rakesh pointed to pressure from new manufacturing nodes, weaker PC demand and a valuation that leaves limited room for disappointment.
TipRanks shows a Hold consensus, with 24 Holds, five Buys and two Sells. The average price target is $116.16, implying about 27% upside.
What it means for the stock: Intel may have AI-driven growth ahead, but investors still face execution and margin risks.