Intel (NASDAQ: INTC)'s Foundry Business Expansion and Valuation Challenges

• Intel (NASDAQ: INTC) is expanding its foundry business, securing key partnerships and driving analyst optimism in the semiconductor industry.
• An analyst raised Intel's stock price target to $135.00, reflecting positive developments in its chip manufacturing and AI initiatives.
• Despite growth, Intel faces valuation concerns, with a significantly higher P/E ratio compared to competitors like Micron (NASDAQ: MU) and NVIDIA (NASDAQ: NVDA).

Intel is a leading technology company that designs and manufactures microprocessors for the personal computer and data center markets. The company is also expanding its foundry business, which involves making chips for other firms. In this area, Intel competes with Taiwan Semiconductor, which currently produces over 90% of the world's most advanced chips.

On June 21, 2026, analyst Vijay Rakesh of Mizuho Securities raised the price target for Intel to $135.00 from a previous target of $128.00. This adjustment came as the stock was trading at $133.99, having reached a new 52-week high of $135.48 during the day, indicating strong market performance.

The positive outlook is supported by progress in Intel's foundry business, which includes a reported chipmaking agreement with Apple (NASDAQ: AAPL). The company also announced a strategic collaboration with Greenstone Biosciences to speed up AI-enabled drug discovery, as reported by Business Wire. This partnership combines Intel's computing power with Greenstone's biological data, highlighting its diversification into new growth areas.

However, some analysts express caution. On CNBC, Gil Luria of D.A. Davidson highlighted a "valuation contradiction" in the chip sector. He points to the price-to-earnings (P/E) ratio, a key investment metric that compares a company's stock price to its profits. A high P/E can suggest investors expect strong future growth, but also potential overvaluation.

Luria notes that Intel trades with a P/E ratio north of 200, while competitors like Micron and NVIDIA have P/E ratios of about 11 and 20, respectively. As highlighted by 247wallst.com, the analyst warns that Intel's valuation "doesn't make sense" compared to its peers, suggesting a potential overvaluation in the current tech stock market.