Intel (INTC, Financials), a U.S. semiconductor company that designs processors for personal computers, servers and data centers while also building chips for outside customers through its foundry business, received a higher price target from Susquehanna ahead of earnings.
The firm lifted its target to $115 from $80, saying recent checks point to better demand for server processors and slightly stronger PC production in the second quarter.
Still, the outlook is not entirely positive. Susquehanna expects PC builds to weaken in the second half of 2026 as memory constraints pressure the market. Intel is also prioritizing limited wafer supply for server chips, where demand and pricing appear more favorable.
The firm sees improving momentum in Intel Foundry, particularly in advanced packaging. One industry contact suggested Google could use Intel's EMIB-T packaging for future tensor processing units.
Margins may remain under pressure, however, as Intel continues ramping its 18A manufacturing process and packaging operations.
The next test comes July 23, when Intel reports quarterly results and updates investors on server demand, PC weakness and foundry progress.