Intel (INTC) is seen with a modest upside bias to its fiscal Q1 results and full-year outlook, driven by resilient PC demand and a sharp inflection in server CPU demand, along with pricing gains of roughly 10%, UBS Securities said in a Monday note.
The bank expects Q1 revenue of about $12.5 billion, above the company's guidance midpoint of $12.2 billion.
UBS said stronger enterprise server demand - roughly 60% of Intel's server CPU revenue - and ongoing pricing gains are supporting near-term results, but it cautioned that weaker PC demand in the second half of 2026 could weigh on the client segment.
According to the report, the bank highlighted Intel's foundry catalysts, including progress on 14A and potential customer commitments after PDK 1.0, while noting that recent partnerships and AI initiatives are sentiment-positive but not materially impactful to near-term earnings.
Despite the improving outlook, UBS maintained a cautious stance on long-term earnings power, citing limits to Intel's earnings per share trajectory even under bullish scenarios.
UBS maintained its neutral rating on the stock but raised its price target to $65 from $51.
Shares of Intel were down more than 0.8% in Monday trading.
Price: 30.02, Change: +0.23, Percent Change: +0.76