UBS has granted Intel a small confidence boost, lifting its price target on the company’s share from $40 to $49, while still keeping a Neutral rating. It seems like this is a sign of approval that is not too enthusiastic, but still polite.
The upgrade is due to the fact that Intel products are getting harder to supply, and due to the idea that the company’s short term performance may be better in the short-term than what was previously predicted.
Intel’s Fourth Quarter
As per UBS, Intel’s fourth quarter will have an “upside bias”, which means that the demand will be stronger than expected in both PCs and servers. To put it differently, chips are selling and there are customers buying them.
Wall Street’s first-quarter estimates have been considered by the firm as reasonable that is nicely aligned with seasonal trends, specifically with the stronger baseline that Intel set in the December quarter. It is not a decisive victory, but neither is it the defeat some investors feared.
Outlook for 2026
UBS describes Intel’s fundamental outlook for 2026 as “mixed albeit improving,” where in the language of an analyst would be that it has been difficult, but probably the worst part is over. The first calendar quarter is anticipated to be the turning point for capacity difficulties, as Intel gradually alters its production mix in favor of Granite Rapids chips that are built on its Intel 3 process.
Also, the company is increasing its Panther Lake production that utilizes the ambitious 18A node, which could be beneficial if the execution remains on path.
Potential Risk
Along with the rising memory prices, UBS has identified this as a potential risk factor and cautioned that traditionally such increases have reduced momentum in the PC market. To sum up, even if Intel successfully transitions its manufacturing, the high-priced components still could persuade the customers not to upgrade their laptops.
This is a reminder that chip lifecycles are not only one company’s business, it takes place with suppliers, pricing, and timing involved.
The CES Hype & a Manufacturing Moment
Intel had also succeeded in creating a buzz besides analysts’ notes. During CES 2026, the firm presented its Intel Core Ultra Series 3 processors, which is the company’s first AI PC platform positioned on the 18A process and is crated in the U.S. The event even received social media admiration from President Donald Trump, which emphasizes the significance of a domestic sub-2 nanometer CPU.
Also, it is planning on bringing in-house 70% of Panther Lake production by the end of 2026, and Intel’s ambition to reshape the comeback storyline is very clear.
Mobileye Keeps Intel in the Fast Lane
Intel’s subsidiary Mobileye is still gradually getting the limelight. The department has made its intention to buy Mentee Robotics, which is a humanoid robotics company that is focused on AI, for about $900 million, and the project aims to combine autonomous driving technology with robotics.
Besides, a large automaker in the U.S has picked Mobileye’s EyeQ6H chip for hands-free driving systems in an estimated 9 million vehicles. This kind of large capacity can attract the attention of investors, despite the fact that Intel’s main business is still overcoming its growing troubles.
Bottom Line
UBS’s price target increase isn’t an indication that Intel is now completely free from troubles. However, it does imply that the company is gaining stronger ground. With the demand getting better, the manufacturing targets set, and Mobileye doing great, the story of Intel is becoming less of a recovery and more like a cautious transformation. Intel isn’t running yet, but at least it’s walking.
