Intel May Raise Chip Prices 10% and the Stock Took Off. Why Most Analysts Still Refuse to Buy.

Intel's stock has skyrocketed 188% so far this year, yet only 32 analysts rate it as a Hold. Intel's foundry operations have lost $2.1 billion on just $293 million in external revenue, with capital expenditures topping $20 billion and high-volume 14A production years away. Competitors AMD and NVIDIA's accelerator dominance have made Intel the more speculative investment, with a forward P/E of 52 and negative EPS.

Despite a 17.98% increase in the past week, many analysts remain cautious, with only 13 Buy ratings, 1 Strong Buy, 1 Sell, and 1 Strong Sell, while the average target price is only modestly above the current price. Intel's CFO and CEO attribute the pricing power to client results and strong demand, while industry shortages in leading-edge logic, silicon wafers, memory, and substrates threaten the company's growth.

Intel's Q2 call revealed that the company expects PC consumption to decline in 2026, which may impact demand for its products. The company's server business, on the other hand, is showing cleaner earnings with a 59% year-over-year increase in data center and AI revenue. Intel Foundry lost $2.1 billion in the most recent quarter, and high-volume 14A production is not expected until 2028.

The company's forward P/E of 52 and negative EPS suggest that Intel is a more speculative investment compared to AMD's cleaner earnings profile and NVIDIA's accelerator dominance.