Predicting Intel's Value by 2030 Could Make It Worth a Look Right Now

Intel (NASDAQ: INTC) has run into rough weather lately, with shares down 19% since the beginning of July. The stock took another blow recently after investment bank Piper Sandler rated it "neutral."

Analyst David O'Connor believes that the incredible rally in Intel stock over the past year could limit more upside, which explains the $110 price target. That suggests an increase of just 7% from current levels. However, we are going to take a closer look at Intel's prospects through the end of the decade and assess whether this semiconductor giant can deliver greater gains over the long run.

Image source: Intel.

Intel's growth rate is picking up due to improving server CPU demand

Despite being neutral on Intel stock, Piper Sandler believes that the company can clock annual revenue growth in the high teens through 2030. That will be a nice improvement over last year, when Intel's top line was flat at $52.9 billion.

Intel's top-line acceleration will be driven by an increase in server CPU (central processing units) demand. These chips are being deployed in AI data centers to run inference and agentic AI workloads. Intel's rival Advanced Micro Devices estimates that the ratio of server CPUs to graphics processing units (GPUs) for facilitating agentic AI workloads is moving to 1:1. That's a big shift compared to the CPU-to-GPU ratio of 1:4 or 1:8 seen in AI data centers running chatbots.

This structural shift in AI workloads toward inference and agentic AI is driving CPU demand and resulting in a supply shortage that's pushing up prices. According to one estimate, Intel is reportedly sitting on a server CPU order backlog of over six months. This explains why server CPU prices have increased by 10% to 35%.

Not surprisingly, Intel is reportedly planning to increase server CPU prices by 10% next month, according to DigiTimes. The strong demand and pricing trend is likely to continue until the end of the decade. Bank of America expects server CPU total addressable market (TAM) to jump by almost 5x between 2025 and 2030, reaching over $170 billion by the end of the decade.

So, Intel can indeed sustain strong growth for the next five years. Consensus estimates project a 19% increase in Intel's revenue in 2026 to $63 billion, followed by robust increases in 2027 and 2028.

Data by YCharts

The uptick in Intel's growth could send the stock significantly higher by 2030.

Investors can expect a big jump in the stock

The chart above shows that Intel's revenue growth rate will improve in 2028 compared with next year's projected increase. Assuming it can clock even 10% annual revenue growth in 2029 and 2030, its top line could jump to almost $100 billion in 2030.

If this semiconductor stock trades at 9 times sales at that time, in line with its current price-to-sales ratio, its market cap will jump to $900 billion. That's 65% higher than Intel's current market cap. So, investors with a longer investing horizon can benefit from significant upside in Intel by 2030, which is why it may be a good idea to buy it following its recent dip.

Bank of America is an advertising partner of Motley Fool Money. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Intel. The Motley Fool has a disclosure policy.