JPMorgan: Intel is 5% away from target price, risk-reward balance upgraded to Neutral

Deep Tide TechFlow reports, according to Tide Research, JPMorgan's October 18, 2026 research note stated that Intel (INTC) closed at $89.85 on October 16, approximately 5% away from its December 2027 target price of $85. The stock has retreated about 36% from its June peak. In Q2 2026, the Data Center and Artificial Intelligence (DCAI) division achieved operating profit of $2.5 billion, surpassing the client business for the first time. The report also mentioned that annualized revenue from Application-Specific Integrated Circuit (ASIC) services is nearing $2 billion, while external foundry annualized revenue is approaching $1 billion. JPMorgan believes that the multi-year sell-off judgment since November 2022 has largely been realized, and the current risk-reward is close to balanced, prompting an upgrade in rating from Underweight to Neutral. The report sets a target price of $85 and forecasts earnings per share (EPS) of $3.60 for 2028, approximately 15% higher than market consensus. JPMorgan highlighted that constraints on foundry scale and free cash flow for 2027 remain, and evidence of upside will depend on verification of four key points: the data center CPU roadmap, AI computing strategy, external foundry customer adoption, and enhancements to data center networking.