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Intel's 40% price drop sparks Buy upgrade amid strong AI-driven server sales and cost cuts.

Analyst Insights
05 Nov 2026, 15:05 WIB
Seeking Alpha
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Bullish
Intel's 40% price drop sparks Buy upgrade amid strong AI-driven server sales and cost cuts.

Intel's stock correction of 40% has reset valuation expectations, leading to an upgrade to Buy despite heavy investment needs through 2027. The company's Q3 results showed a $565 million sequential rise in DCAI operating profit to $3 billion, with high incremental margins around 53%. Manufacturing costs have dropped 40% since Q1, and Foundry losses narrowed by $236 million sequentially despite ongoing investments. Trading near 20 times projected 2028 earnings at $60 per share, Intel's turnaround is gaining confidence, especially driven by AI infrastructure demand in server sales, though concerns remain over negative free cash flow in 2027.

Intel's stock trades at USD 56.40 on Pluang as of Nov 05, 2026 20:01 WIB, down 3.21% in the last day. The stock's market cap stands at $309.71 billion, reflecting significant investor interest despite recent volatility. Pluang users show a buying preference with 62% of order activity favoring purchases over sales.

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