DA Davidson opened coverage of Intel Corporation (NASDAQ: INTC) with a Neutral recommendation and a $45.00 price target, an assessment that sits very near the company's prevailing market price of $46.49. The research house observed that its view broadly aligns with the prevailing analyst consensus, recorded at 2.81 on the same scale - a level that equates to Neutral.
In its initial report, DA Davidson described Intel's corporate transition as "one of the hardest resets in semiconductor history." The firm emphasized that the company is attempting a twofold transformation: rebuilding its leading-edge process technology while simultaneously positioning itself as a reliable third-party foundry for external customers.
Despite the scale of that operational turnaround, the analyst noted there are "real developments across the business for investors to get excited about." Those developments have coincided with substantial market appreciation: Intel's shares have risen 121.41% over the last six months and posted a 114.81% gain over the prior 12 months.
Even with those gains and ongoing initiatives, DA Davidson characterized Intel as the "ultimate 'show me' story," underscoring that the company still needs to demonstrate consistent execution before the cautious viewpoint shifts. That caution is rooted in recent financial performance: Intel was not profitable over the trailing twelve months, although analysts anticipate the firm will return to profitability within the current year.
Valuation entered centrally into DA Davidson's assessment. The firm wrote that the current market price "continues to reflect assumptions we view are all too optimistic." Supporting that concern, InvestingPro data cited by the report shows Intel trading above its Fair Value and carrying relatively high valuation multiples, including an enterprise value to EBITDA multiple of 19.39x.
Beyond DA Davidson's initiation, the report summarized several corporate developments that bear on Intel's strategy and market outlook. The company has announced plans to enter the graphics processing unit (GPU) market and has hired a chief GPU architect to lead that initiative. Intel also revealed a partnership with SoftBank Corp.'s SAIMEMORY to commercialize next-generation Z-Angle Memory (ZAM) technology, aimed at improving processing performance for data centers and AI model training.
Other analyst activity referenced in the report included Tigress Financial Partners raising its Intel price target to $66 while retaining a Buy rating, citing AI data center demand and potential AI-driven PC refresh cycles as growth drivers.
The company has also taken regulatory and contractual steps: Intel filed a resale prospectus supplement with the U.S. Securities and Exchange Commission to update the registration of securities tied to an agreement with the U.S. Department of Commerce; that filing did not involve issuance of new securities.
Finally, the coverage noted a related supply agreement in the broader Intel corporate ecosystem: Mobileye Global Inc. secured a contract to provide advanced driver assistance systems to Mahindra & Mahindra Ltd. for at least six upcoming vehicle models, with production set to begin in 2027. Those systems will be powered by Mobileye's EyeQ6 High system-on-chip and will employ multiple cameras and radar sensors.
Context and implications
The initiation from DA Davidson frames Intel at a crossroads: the company is pursuing complex technical rebuilds and business model shifts while trading at valuations that some analysts view as aggressive. Investors tracking semiconductors, data center technology and AI-related hardware will likely weigh DA Davidson's caution alongside the operational milestones Intel continues to pursue.