Intel reiterated buy at Tigress Financial, sees 35% upside from current levels
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Intel (NASDAQ:INTC) is being reiterated buy at Tigress Financial, with a $72 price target, implying 35% upside from current levels, as the company continues to invest in processor development and the upcoming spin-off of its Mobileye division could be a "significant upside catalyst."

Tigress Financial analyst Ivan Feinseth noted that the Pat Gelsinger-led Intel (INTC) is continuing to make "significant capital investments" in new processor developments, as it tries to regain a leadership position in the semiconductor industry, away from the likes of Advanced Micro Devices (NASDAQ:AMD), Nvidia (NASDAQ:NVDA) and others.
In addition, the decision to take its Mobileye unit public sometime later this year, could potentially unlock "tremendous shareholder value," while providing additional capital for investment in certain growth areas.
Intel (INTC) is also benefiting from strength in its Client Computing Group, as well as its Data Center processor group, which will help it overcome near-term weakness as it is aided from global demand and the push for data centers to focus on cloud and hybrid cloud infrastructure.
Intel (INTC) shares are slightly higher on Tuesday, trading at $53.57. Over the past year, Intel (INTC) shares have gained slightly more than 7%.
Separately, Feinseth added that Gelsinger, who joined Intel (INTC) from VMware (NYSE:VMW), sees a "significant opportunity" in the company's new Integrated Device manufacturing strategy, having recently announced a new foundry initiative to manufacture processors for other firms and partnering with other companies viewed as competitors to develop new processors. Feinseth believes that the foundry business, to be known as Intel Foundry Services, will be a "leading provider of foundry capacity to meet the growing worldwide demand for semiconductor manufacturing," potentially generating $100 billion in revenue by 2025.
Last month, it was reported that Intel's (INTC) talks with the Italian government were "intensifying" as the chipmaker looks to build a packaging plant in the European country.