Mizuho has increased its price target (PT) for Intel (NASDAQ: INTC) to $23 from $20, maintaining a Neutral rating on the stock. The upgrade reflects the potential for Intel's foundry business to benefit from U.S. government incentives, particularly if the Trump administration prioritizes domestic AI chip production.

Key Takeaways:

• Government Support Boost: Intel, the largest beneficiary of the CHIPS Act, could see additional funding under a protectionist AI chip manufacturing push.
• Potential Buyout Talks: Reports suggest that TSMC (NYSE: TSM) and Broadcom (NASDAQ: AVGO) are exploring deals involving Intel's foundry unit.
• Limited TSMC Interest: Mizuho sees TSMC as an unlikely buyer, as the Taiwanese giant seeks to maintain its lead in advanced chip manufacturing.
• Broadcom as a Potential Suitor: Broadcom may be more inclined to pursue Intel, given the potential benefits in industry leadership, discount valuations, and operational streamlining.
• Intel's Challenges Remain: The company continues to struggle with market share losses in AI and server chips, weak AI monetization, and a difficult transition to a foundry model.

Market Implications

• Short-Term Sentiment: The potential for increased government support may provide a short-term boost to Intel's stock.
• Long-Term Uncertainty: Intel's restructuring efforts, leadership instability, and competitive pressures from TSMC, AMD (NASDAQ: AMD), and Nvidia (NASDAQ: NVDA) remain headwinds.

Investor Insights

• Track financial growth trends to monitor Intel's foundry progress.
• Compare key financial metrics to assess Intel's valuation versus industry peers.

Bottom Line

Intel's foundry business may gain momentum with U.S. policy tailwinds, but structural challenges and competition could limit upside potential. Investors should watch for further government incentives, M&A developments, and Intel's next leadership moves.