Intel (INTC) shares surged 3.6% in pre-market trading on July 15, finishing the day up 4.50%, following a series of positive updates on its advanced manufacturing processes and upbeat analyst revisions. The primary catalyst was a reported leap in yields on the company's 18A process node, from around 65% last quarter to roughly 85% now, placing Intel just behind TSMC's N2 process at approximately 90% and well ahead of Samsung's competing technology.
Adding to the momentum, Intel confirmed it will move production of its next-generation Nova Lake chip in-house rather than outsourcing it—a strong signal of confidence in the 18A node. This shift is seen as pivotal for the company's foundry ambitions.
KeyBanc raised its price target on Intel to $155 from $110, retaining an Overweight rating, stating the yield improvements are "fundamentally changing the investment thesis." The firm also highlighted design wins from major tech customers and robust server CPU demand driven by agentic AI workloads. HSBC doubled its price target and reiterated a Buy rating, calling the foundry business "increasingly compelling." In contrast, Rosenblatt raised its target from $50 to $65 but maintained a Sell rating, citing concerns that yield limitations could cap growth at around 20% year-over-year.
ASML's strong quarterly results provided additional lift. The equipment maker not only beat revenue and profit expectations but also named Intel as the first chipmaker to achieve production qualification on High NA EUV lithography—the most advanced chip-printing technology available. This endorsement added credibility to Intel's process claims and broadly lifted semiconductor stocks, helping the Nasdaq gain 0.6% and the S&P 500 rise 0.3%.
Investors now turn their attention to Intel's Q2 earnings on July 23, with the company guiding for $0.20 EPS. In Q1, Intel posted $0.29 EPS on revenue of $13.58 billion, a 7.4% year-over-year increase. While institutional interest remains solid (64.53% of shares held by institutions) and new positions have been initiated, the consensus analyst rating remains a Hold with a price target of $101.96—well below the most bullish projections.
