Bank of America: Intel's stock price is ahead of its earnings potential

Glonghui, January 26｜After the earnings report was released, Bank of America analyst Vivek Arya and his team updated their outlook on Intel stock. The analyst pointed out that Intel is still unable to achieve ideal yields for its own products on the current 18A process. In the foundry market, which lacks scale and a track record of execution, the upcoming 14A process may also struggle to promise stable and reliable production for external customers. The team expects Intel's annual sales growth rate over the next three years to be 3%–7%, with external foundry revenue projected to reach $2 billion in 2027 and $4 billion in 2028. In his research report, Arya reiterated an “underperform” rating on Intel stock with a target price of $40, based on a 3.5x enterprise value/sales multiple for 2027, which falls within the historical range of 1.7–4x.