11:10 AM EDT, 10/22/2025 (MT Newswires) -- Intel ( INTC ) stock valuation appears "unsustainably rich," disconnected from the chipmaker's fundamentals, Wedbush Securities said Wednesday in a report.

The stock has benefited recently from investments by the US government, Nvidia (NVDA) and SoftBank, which bolstered Intel's ( INTC ) balance sheet and spurred investor optimism, Wedbush said ahead of Intel's ( INTC ) quarterly earnings on Thursday.

The deals haven't altered the "fundamental narrative," including the sales or earnings outlook or progress in improving either fabrication operations or chip designs, the report said.

The high valuation isn't justified, partly due to "a continued lack of clarity around future success," Wedbush said.

Still, Intel's ( INTC ) Q3 and Q4 results and guidance are expected to top Wall Street forecasts, supported by modest growth in personal computer sales and stronger server demand driven by artificial intelligence workloads, Wedbush said. Higher average selling prices for legacy chips may boost revenue and margins, the report said.

Wedbush raised its price target on Intel ( INTC ) stock to $20 from $19, citing an improved net debt per share position, while maintaining its neutral rating.

Intel's ( INTC ) shares fell 3.2% in Wednesday trading.

Price: 36.92, Change: -1.20, Percent Change: -3.15