The outlook for AI computing power demand is promising, France and Pakistan raised the target prices for Nvidia (NVDA.US) and Intel (INTC.US), but they are still on the sidelines

The Zhitong Finance App learned that BNP Paribas continues to list Nvidia (NVDA.US) as the semiconductor industry's preferred stock and raised its target price from $285 to $345. Faba believes that with a complete product portfolio covering AI hardware, CUDA software, and network products, Nvidia is expected to continue to maintain its leading position in the field of AI computing. Meanwhile, as AI workloads shift further from model training to inference, the company's competitive advantage is expected to continue.

France and Brazil also raised the target price of Intel (INTC.US) sharply, from $75 to $125, but maintained a “neutral” rating. The bank believes that the demand for computing power of AI agents continues to grow, which is expected to drive a rise in demand for server CPUs, but whether Intel's foundry business can establish competitiveness is still the key to affecting its future performance.

Demand for AI inference continues to grow, France and Pakistan continue to prefer Nvidia

France and Pakistan said that the increase in Nvidia's target price is mainly based on the company's extensive AI product layout. In addition to having an important position in the field of AI acceleration chips, Nvidia also has a CUDA software ecosystem and network products, enabling it to provide a product portfolio covering multiple aspects of AI computing.

With the development of the AI industry, demand for computing power is increasingly skewed towards the “inference” process, that is, the process of performing tasks in actual applications after completion of training. France and Pakistan believe that this trend is expected to continue to support Nvidia's market position.

Despite increasing competition from custom chip and other semiconductor manufacturers, France and Pakistan expect Nvidia to maintain a gross profit margin of more than 70%, indicating that the bank believes that the competitiveness and profitability of its products will remain resilient in the short term.

Based on the above factors, France and Pakistan raised Nvidia's price target from $285 to $345 and continued to list it as the preferred stock in the semiconductor sector.

AI agents boost server CPU demand, and Intel's target price has been drastically raised

In addition to Nvidia, France and Pakistan have also clearly raised their valuation expectations for Intel, drastically raising the target price of the stock from 75 US dollars to 125 US dollars, although it still maintains a “neutral” rating. France and Pakistan believe that as AI smart applications continue to develop, the demand for computing resources will expand further, which may drive the increase in demand for server CPUs, thus bringing new growth opportunities to Intel.

AI computing power requirements are not limited to AI accelerators such as GPUs. As AI agents need to use more computing resources to perform complex tasks, the importance of traditional server CPUs may also increase. France and Pakistan believe that this trend is expected to become a potential supporting factor for Intel's future business.

Foundry remains a key test 14A process progress is receiving attention

However, France and Pakistan remain cautious about Intel. The core reason is that there is still great uncertainty about the future of its foundry business. Analysts from France and Pakistan said that the Intel 14A process will be a key indicator for testing the company's ability to establish a competitive foundry business. However, since visibility into key customer projects is still limited, the bank chose to wait and see for the time being.

Therefore, although the increase in server CPU demand brought about by AI agents has improved Intel's potential growth prospects and pushed France and Pakistan to drastically raise their target prices, whether the foundry business can make substantial progress will still be an important factor in determining whether the market can further reevaluate Intel.

In contrast, France and France have a more positive attitude towards Nvidia. The bank believes that in a context where demand for AI computing continues to grow and workloads gradually shift to inference, Nvidia is expected to continue to maintain a leading position with a complete ecosystem formed by chips, CUDA software, and network products, and maintain a gross profit margin of more than 70% in the face of increased competition.