Mizuho Cuts Intel Target to US$92 Despite AI and Foundry Tailwinds

Mizuho lowered its price target for Intel from US$109 to US$92 on 3 September, despite identifying several potential drivers for stronger demand across the chipmaker’s business.

The firm cited rising agentic AI demand, enterprise server refreshes, improving corporate PC demand and possible growth in Intel’s foundry operations. Mizuho said server original equipment manufacturers were reporting accelerating agentic AI demand into 2027, which could increase the ratio of CPUs to GPUs used in AI infrastructure.

Mizuho also expects Intel’s advanced packaging revenue to reach US$3.5 billion by 2029. External customers using Intel’s 14A process could potentially contribute another US$3.5 billion, although both figures are projections rather than confirmed revenue.

Supply remains a key risk. Mizuho warned that CPU constraints could limit Intel’s unit growth and create shortages for customers next year, potentially giving competitors an opportunity to gain share.

The target reduction also reflects expected near-term valuation compression across agentic AI stocks, according to Mizuho. That suggests the decision was driven partly by how much investors may be willing to pay for projected growth, rather than solely by weaker operating fundamentals.

Insider Monkey’s database recorded 138 hedge funds holding Intel at the end of the second quarter, up from 112 previously. Coatue Management and AQR Capital Management were listed among the notable holders, although the ownership figures were not independently verified in the supplied material.