This article first appeared on GuruFocus.
Intel (NASDAQ:INTC) shares climbed more than 2% in premarket trading on Friday after reports suggested the chipmaker may collaborate with Tesla (NASDAQ:TSLA) to build advanced AI chip manufacturing facilities.
The potential tie-up comes as automakers race to secure AI hardware capacity, with Tesla signaling it may need to construct its own gigantic chip fab to support self-driving and robotics ambitions. Intel, which has been working to expand its foundry services, could provide the necessary infrastructure and expertise to meet that demand.
No formal agreement has been announced, but reports of early discussions lifted investor sentiment. A deal could help Intel reassert itself in the fast-growing AI chip market, where rivals like Nvidia (NVDA) and AMD (AMD) dominate.
The move aligns with Intel’s broader turnaround plan to rebuild its manufacturing lead and boost revenue through external partnerships.
Based on the one year price targets offered by 36 analysts, the average target price for Intel Corp is $35.04 with a high estimate of $50.00 and a low estimate of $18.00. The average target implies a downside of -5.92% from the current price of $37.24.
Based on GuruFocus estimates, the estimated GF Value for Intel Corp in one year is $23.64, suggesting a downside of -36.52% from the current price of $37.24. Gf value is Gurufocus’ estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business’ performance. For deeper insights, visit the forecast page.