Can Intel Stock Realistically Reach $43—or is That A Pipe Dream?

It’s been some number of years since Intel (NASDAQ:INTC | INTC Price Prediction) stock was this hot after spiking more than 45% in the past month alone. Since the July lows, the fallen semiconductor company has gained over 83%, and with recent investments from the likes of Nvidia (NASDAQ:NVDA) and the U.S. government, confidence is building as the firm looks to play catch-up. 

With Intel reportedly seeking an investment from Apple (NASDAQ:AAPL), which dropped use of its chips for its own many years ago, the red-hot INTC trade is starting to look interesting again. Of course, just because Intel has won over some investment dollars doesn’t mean that it’s in the clear.

The foundry business has been losing significant sums of cash, and with pressure to keep spending more to restructure and turn things around, Intel is not going to be an overnight turnaround story. In fact, it may take five years or more to see investments really pay off and work their way into the stock.

Of course, the recent wave of investments is a positive sign, but how much of the recent stock move is now overdone? It’s tough to tell. Even after the sudden surge, some analysts see higher highs in store for Intel stock over the year ahead.

Intel stock: Could $43 per share be in the cards?

The current Street-high price target of $43 per share belongs to Benchmark, which believes a “watershed” moment is upon it after its deal with the great Nvidia. Indeed, Nvidia’s top boss Jensen Huang isn’t one to make investments or even strategic partnerships unless he sees real potential. Whether Nvidia’s vote of confidence is enough to justify backing up the truck on shares today (at around $35 per share), though, remains a big question on the minds of prospective buyers.

Personally, I think the $43 price target, which entails around 28% in additional upside from Friday’s close, is entirely within reason, especially since Nvidia’s $5 billion stake is pretty much a blessing from one of the biggest forces in the world of AI chips.

Jensen Huang and company know what they’re doing, and if they see potential in one of the foes they’ve bettered, I think investors should take notice. Of course, the x86 roadmap may seem like a thing of the past to some. Either way, I think it’s a mistake to rule out x86’s future entirely, especially now that Intel has some big backers behind it.

Though I wouldn’t rush into INTC stock at these fresh 52-week highs (the stock has pretty much gone straight up when you look at the past-year chart), I would look to nibble on a few shares on a potential pullback between now and the end of the year. Who knows? If Apple and other influential tech titans step up with their own stake, I do think the latest spike could extend into October. 

Chasing Intel shares might not be the best move after the latest run-up

For every few bulls, there have been plenty of bears on Wall Street when it comes to Intel. The name was downgraded by Citi to sell just over a week ago. Perhaps the Nvidia investment headline is a bit overblown. Could it be more of a helping hand at rock-bottom prices rather than a big bet on “breakthrough?” It’s hard to tell.

Either way, I view the risk of a correction as heightened, given the past-week run and the potential for shares to sag should no further big-name investment deals come flowing in. In any case, I wouldn’t hold my breath waiting for an Apple investment.