Intel (INTC) faces an "upward bias" for Q4 results thanks to strong PC and server demand, along with improving sentiment on its foundry business and its upcoming 14A manufacturing process, UBS Securities said Tuesday in a report.

Potential customers for the 14A process include Nvidia (NVDA) for gaming chips, as well as Google (GOOG, GOOGL), Broadcom (AVGO), and Apple (AAPL), the report said

Intel is shifting its product mix toward higher-end chips built on its Intel 7 and Intel 10 process technologies due to tight supply, UBS said. That shift is expected to support near-term strength in Intel's client business, which may outperform overall PC unit shipments, the report said.

"Given the limited supply on INTC 7/10 nodes, the company is de-emphasizing lower-end PC products, which we think will offer near-term tailwinds for the client business," the report said.

UBS increased its price target on Intel stock to $49 from $40 and maintained its neutral rating.

Intel shares 3% in late Wednesday trading.

Q1 results are due Jan. 22.

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