Analyst Sees Significant Upside for Intel, Targeting $200 Valuation
Intel’s remarkable turnaround this year has captivated the technology sector. Now, Melius Research analyst Ben Reitzes suggests the most significant gains are yet to come, projecting a potential $200 per share valuation for the chipmaker within two years. This optimistic outlook is based on a detailed analysis of Intel’s individual business segments.
Reitzes reaffirmed his “Buy” rating and a $165 price target for Intel on September 16, emphasizing that his sum-of-the-parts valuation indicates substantial upside beyond that figure. The $165 target itself represents a 15-20% discount to the $200 valuation he deems achievable.
The foundation of Reitzes’ thesis rests on two key areas: Intel’s product operations and its burgeoning foundry business. He estimates that each of these segments could independently be worth more than $80 per share.
Intel shares have already experienced a significant surge, climbing approximately 160-163% year-to-date as of mid-September 2026. However, Reitzes contends that the market has not yet fully factored in the potential of the foundry unit, especially as escalating demand for artificial intelligence continues to strain global semiconductor supply chains and prompts governments to prioritize manufacturing self-sufficiency.
Intel recently announced a $20 billion equity raise, priced at $95 per share, to finance its long-term strategic roadmap. Reitzes interprets this move as a strong indicator of management’s confidence in the returns expected from its advanced manufacturing investments. The company’s spending plans also signal a substantial increase in capital expenditures for 2027 compared to 2026 levels.
Coinciding with Reitzes’ analysis, reports emerged that SK Hynix, the South Korean memory chip giant, is exploring options for memory chip manufacturing in the United States, including high-bandwidth memory (HBM). One avenue under consideration involves Intel’s planned facility in Ohio, potentially through a leasing agreement or a joint venture. While these discussions are in their preliminary stages and no definitive agreement has been reached, the mere prospect was sufficient to boost Intel’s stock price on the day.
HBM has emerged as one of the most critical components in the semiconductor industry. This type of memory is integral to Nvidia’s data center GPUs, and demand has far outpaced supply as companies accelerate their efforts to build AI infrastructure. If SK Hynix were to establish HBM production at an Intel-operated fabrication plant in Ohio, it would serve as a significant endorsement of Intel’s foundry-as-a-service model.
For investors closely monitoring the sector, the SK Hynix discussions represent a potentially crucial near-term catalyst. A formal partnership would provide concrete evidence that major chip manufacturers view Intel’s foundry services as a viable manufacturing solution. Until such agreements are finalized, the gap between Reitzes’ $165 target and his more ambitious $200 scenario remains a reflection of the current market perception versus what Intel still needs to demonstrate.
