Morgan Stanley Bullish on AMD and Costco
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 26 2026
0mins
Should l Buy INTC?
Source: CNBC
- Optimistic Earnings Outlook: Morgan Stanley analysts predict an above-average earnings beat rate for the S&P 500 in Q4, with 75% of the 13% of companies that reported by January 23 exceeding earnings expectations and 69% surpassing revenue forecasts.
- Strong AMD Performance: Analysts expect AMD to benefit from robust demand in the server microprocessor market in its upcoming earnings report next Tuesday, with a price target of $260 slightly above its Friday close of $259.68, reflecting confidence in its future earnings power.
- Costco Sales Rebound: Costco's price target of $1,130 implies a 15% upside, with analysts forecasting a sales reacceleration starting in May, returning to normal levels of 7% to 8%, despite a total return of negative 5% over the past year.
- Southwest Airlines Stock Surge: Southwest Airlines shares have risen 30% over the past year, with analysts expecting investor interest in the January 27 rollout of assigned seating, and Morgan Stanley's price target of $50 suggests a 19% upside from Friday's close.
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Analyst Views on INTC
Wall Street analysts forecast INTC stock price to fall
29 Analyst Rating
5 Buy
19 Hold
5 Sell
Hold
Current: 61.720
Low
20.00
Averages
39.30
High
52.00
Current: 61.720
Low
20.00
Averages
39.30
High
52.00
About INTC
Intel Corporation is a global designer and manufacturer of semiconductor products. The Company operates through three segments: Intel Products, Intel Foundry, and All Other. Its Intel Products segment includes Client Computing Group (CCG), Data Center and AI (DCAI), Network and Edge (NEX). The CCG is bringing together the operating system, system architecture, hardware, and software application integration to enable PC experiences. DCAI delivers workload-optimized solutions to cloud service providers and enterprises, along with silicon devices for communications service providers, network and edge, and HPC customers. NEX helps networks and edge compute systems from fixed-function hardware to general-purpose compute, acceleration, and networking devices running cloud native software on programmable hardware. The Intel Foundry segment comprises technology development, manufacturing and foundry services. All Other segments include Altera, Mobileye, Other.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Fitness Industry Gains: Planet Fitness has seen a cumulative revenue growth of 171% over the past five years, with a 6.7% increase in same-club sales in 2025 and 1.1 million new members, suggesting a rising demand for fitness driven by weight-loss drug usage.
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- AI-Driven Growth: By leveraging its Generative AI Recommendation Model (GEM) and Lattice architecture, Meta enhances ad relevance, driving strong growth in ad impressions and prices, which creates a powerful revenue growth flywheel that further solidifies its market position.
- New Platform Potential: Meta is beginning to serve ads on WhatsApp and is gradually rolling out its new social media platform, Threads, which has the potential to become a future growth driver, especially as its user base continues to expand.
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- Tech Stock Turmoil: Software stocks like ServiceNow and Salesforce have plummeted by 30% to 40% despite strong profitability due to fears of AI's impact, while hardware stocks have surged by 50% to 150%, reflecting a stark divergence in market sentiment towards the tech sector.
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- Bank Earnings Season: Goldman Sachs is set to report earnings, expected to showcase a stronger narrative than traditional banks, while Wells Fargo's performance may be influenced by market underestimations of its historical issues, potentially leading to more realistic expectations.
See More
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- Energy Sector Surge: The ongoing war in Iran has led to a surge in crude oil prices, making energy stocks the best-performing sector in the S&P 500, indicating strong market expectations for energy demand that may attract more investor interest.
- Defense Stocks Decline: Contrary to expectations that war would boost defense stocks, RTX's shares have fallen about 5.7% over the past month, which, compared to the nearly 8% drop in the Dow Jones U.S. Select Aerospace & Defense Index, suggests a relative resilience but also reflects cautious market sentiment regarding defense spending.
- Potential Defense Spending Boost: A report from Melius Research estimates that the U.S. will need to spend $6 billion to restock RTX-made ammunition and weapons to pre-conflict levels, indicating that demand for RTX's products may increase after the war, highlighting the company's potential benefits from future defense spending.
- Upcoming Earnings Report: RTX is set to release its first-quarter earnings on April 21, with market expectations for potential surprises, especially given that all three of its primary segments are considered to have durable competitive advantages, which may bolster investor confidence in its future performance.
See More
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- Nuclear Investment Opportunity: Bank of America analysts project that the upcoming nuclear renaissance could represent a $10 trillion market opportunity, with nuclear innovators like Oklo and NuScale Power poised to benefit directly from this trend, making them attractive options for aggressive growth investors.
- Comparison of Oklo and NuScale: While both companies focus on small modular reactor technology, Oklo's strategy is more aligned with data center needs, having signed a deal with Meta Platforms for a 1.2GW system expected to come online by 2030, highlighting its advantageous market positioning.
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See More
