Intel could become the No. 2 chip foundry, analyst upgrades rating

KeyBanc upgraded Intel to Overweight and raised its price target from $40 to $60; Intel shares jumped nearly 8% in Tuesday trading.

KeyBanc Capital Markets issued an upgrade for Intel that was followed by a marked intraday share gain. The analyst cited progress on Intel's 18A and 14A process nodes and raised a price target. The report placed that technical progress at the center of a case for Intel moving up in foundry rankings. The article also noted current market consensus metrics and recent share-performance history. Reported highlights: - The article mentions KeyBanc analyst John Vinh upgraded Intel from Sector Weight to Overweight and increased his price target from $40 to $60. - The article mentions Intel shares jumped nearly 8% in Tuesday afternoon trading after the appraisal. - The article mentions Vinh said yields on the 18A node have improved to over 60% and that 18A, along with 14A, could help Intel become the No. 2 foundry supplier ahead of Samsung. - The article mentions Intel is reported to be nearly sold out for the year on data-center CPUs and that further sales could require higher prices. - The article mentions Wall Street consensus shows a Hold rating based on seven Buys, 17 Holds and five Sells, and that the average INTC price target of $40.96 follows a 129.48% rally over the past year and implies 13.39% downside risk. Summary: The analyst upgrade and higher price target coincided with a near 8% share rise and emphasize a view that improvements in Intel's process nodes may affect its competitive position in chip foundry services. Market consensus and analyst metrics remain mixed, and further changes will depend on upcoming technical and sales developments. Undetermined at this time.