135Target price? Hold on a second.
Let's do some simple math. If total AI chip build-out grows at a 15% CAGR to 2030, then the TAM for $Taiwan Semiconductor Manufacturing(TSM)$ , $Intel(INTC)$ , Samsung, and Tesla (TerraFab) doubles to $500 billion by 2030. Intel Foundry will also support TerraFab, so we're talking a conservative 20% of that pie, or $100 billion in annual sales. At a 25% operating margin, that's $25 billion a year in operating profit just for IFS.
Adding $25 billion a year in operating profit from Intel Products makes Intel a $50 billion annual operating profit business. So how on earth does that translate to a price target of $135 a share? It should be $500 to $800 at a minimum.
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