Intel Corporation (NASDAQ: INTC): Foundry Business, AI, and Apple Deal Drive Optimism

Font: Financial Modeling Prep  • May 12, 2026

• Intel's strategic shift towards its foundry business and AI server CPUs is restoring investor confidence.
• Deutsche Bank has raised its price target for Intel, reflecting cautious optimism despite the new target being below the current stock price.
• A significant preliminary agreement with Apple Inc. to manufacture chips highlights the growing success and potential of Intel's foundry services.

Intel Corporation (NASDAQ: INTC) is a major semiconductor company that designs and manufactures microprocessors for computers and data centers. The company is also expanding its foundry business, which involves making chips for other companies. Intel's stock is currently trading at $129.44, with a large market capitalization of approximately $650.57 billion.

On May 12, 2026, Deutsche Bank raised its price target for Intel to $100.00 from a previous target of $63.00. A price target is an analyst's projection of a stock's future price. This new target is below the stock's current price, suggesting some analysts value the company more cautiously than the broader market.

The market's strong optimism is fueled by a company turnaround. Under CEO Lip-Bu Tan, Intel is cutting costs and refocusing on its foundry business and AI server CPUs. This strategic shift, along with support from converted CHIPS Act grants, has helped restore investor confidence after past execution issues, as highlighted by Invezz.

A recent preliminary agreement with Apple Inc. further supports this positive view, as highlighted by The Wall Street Journal. Under the deal, Intel would manufacture certain chips for Apple using its advanced 18A node process. This represents a significant high-profile deal for the chipmaker's growing foundry services.

Analysts at Wedbush view the Apple deal as a positive sign for Intel, as highlighted by Proactive Investors. However, they also note it raises questions about the company's manufacturing progress. This suggests investors are watching to see what the deal implies about Intel's long-term technology roadmap and its ability to deliver.