This article first appeared on GuruFocus.
Intel shares fell about 1.5% on Monday after rising 10% on Friday due to an analyst prediction that the chip maker could supply low-end M processors to Apple as early as 2027.
TF International analyst Ming-Chi Kuo said the visibility of Intel becoming an advanced-node supplier to Apple has significantly improved, but he cautioned that the volume will be small and have little impact on Taiwan Semiconductor Manufacturing Co.’s dominance.
Investors trimmed profits as the market digested the timeline, which depends on Intel releasing a process design kit as early as 2026 and then implementing lossless manufacturing.
Analysts say Apple’s limited wins could also validate Intel’s foundry push and help attract other customers, yet they caution that the company will have to prove consistent execution to narrow the technology gap with TSMC and Samsung.
The episode underscores the fragile nature of Intel’s recovery: Momentum has returned after months of losses, but the company still faces legal and competitive hurdles, including a recent lawsuit alleging leaked trade secrets, which could complicate its path to becoming a major contract manufacturer.
Based on one-year price targets offered by 37 analysts, the average target price for Intel Corp. is $35.49, with a high estimate of $52.00 and a low estimate of $18.00. The average target represents a -11.29% downside from the current price of $40.01.
Based on GuruFocus estimates, the estimated GF price for Intel Corp in one year is $23.92, indicating a -40.21% decline from the current price of $40.01.
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