It would be easy—far too easy—to say that Intel’s (NASDAQ:INTC) recent run-up is thanks to the halo effect coming from Micron Technology (NASDAQ:MU). But as it turns out, Intel’s hefty 8% gain in Wednesday’s trading isn’t just from Micron’s boost. Intel rolled out a lot of good news on its own that gave the stock its boost.
The biggest move came from Intel’s recent investor event, where it not only showed off new chips but also a timeline of future releases that showed when more new chips were coming — or, at least, approximately. Intel revealed that its fourth-generation Xeon chip is already pulling a ton of wins—450 design wins at last report—and is currently in use by over 50 different original equipment manufacturers (OEMs).
Good news, but it got better. Intel’s fifth generation Xeon—otherwise known as Emerald Rapids—will start hitting devices just in time for holiday shopping season this year. Better yet, Intel’s low-powered chip line, Granite Rapids, will hit just after that in the first half of 2024.
Some have already emerged, with some customers getting to give the chips a little advance testing. Intel even has an encore already planned; Clearwater Forest, the next version of its low-powered chips, will hit shelves sometime in 2025. And that’s only the start of what Intel has planned for the next few years.
Analysts, however, haven’t changed their minds about Intel all that much. Right now, Intel stands at a Hold by analyst consensus. Moreover, thanks to Intel stock’s average price target of $27.66, it also comes with 13.16% downside risk.
