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Intel (INTC) got a vote of confidence late last week, just days ahead of its Q2 earnings report on July 23. Susquehanna analyst Christopher Rolland raised the firm’s price target from $80 to $115. The analyst expects a solid quarter, driven primarily by the strong server chip sales. This view lines up closely with what Intel's management said on its last earnings call. CFO David Zinsner stated that the server demand had improved over the previous three months, with double-digit growth expected to run into 2027. Rolland also believes that the server demand could outpace supply well into 2028. He also sees momentum in Intel’s factory business and noted that Alphabet (GOOG) (GOOGL) could use Intel’s advanced packaging for its next AI chips.
However, the analyst is more skeptical about the second half of the year. Rolland expects PC sales to be weaker than usual, mainly due to rising memory prices. Notably, this isn’t just his view. In April, Intel’s management also told investors that it expected PC demand to weaken later in the year. Servers are carrying the momentum, while the PC market looks softer.
