KeyBanc Turns Bullish on Intel (INTC), Citing Server CPU Tightness and Foundry Yield Gains

Group 1 - Intel Corporation is recognized as a trending AI stock, with KeyBanc upgrading its rating from Sector Weight to Overweight and setting a price target of $60.00, driven by improving foundry yields and strong data center demand from hyperscalers [1] - Despite challenges in the server CPU market, Intel is reportedly sold out for the year in server CPUs as hyperscalers increase data center construction [2] - The company is contemplating a 10-15% increase in average selling prices, with foundry yields for the 18A process improving to over 60%, facilitating the ramp-up of Panther Lake [3] Group 2 - Intel's yield performance is favorable compared to Samsung's SF2 process, although it lags behind TSMC's 2nm process, which operates at 70-80% yield [4] - Intel has secured Apple as a customer for its 18A process, which will be utilized for low-end M-series processors in MacBooks and iPads, expected to enter production in 2027 [5] - Discussions are ongoing between Intel and Apple regarding the use of the 14A process for low-end mobile A-series processors for iPhones, anticipated for 2029 [5]