TLDR
- KeyBanc upgraded Intel to Overweight on Tuesday, sending shares up 7.3% to $47.29 and marking a new 52-week high.
- The chipmaker’s server CPU inventory is nearly depleted for 2026, prompting consideration of a 10-15% price hike.
- Intel’s 18A manufacturing process yields now exceed 60%, positioning the company as a potential second-place foundry behind TSMC.
- Apple is expected to use Intel’s foundry services for MacBook and iPad processors starting in 2027.
- AMD also got upgraded with a $270 target, with analysts expecting 50% server CPU revenue growth and $14-15 billion in AI GPU sales.
Intel shares jumped Tuesday following a KeyBanc upgrade that caught Wall Street’s attention. The stock rose 7.3% to close at $47.29, establishing a fresh 52-week high.
John Vinh upgraded Intel to Overweight and set a $60 price target. That figure ranks among the most optimistic calls from major analysts. The upgrade focused on server CPU supply constraints and booming AI infrastructure spending.
The chipmaker has almost sold through its entire server CPU allocation for 2026. Industry checks reveal Intel is now evaluating a 10-15% average selling price increase. Data center customers need these processors to run AI models and cloud services.
Artificial intelligence workloads continue driving unprecedented demand for server hardware. Tech companies are pouring billions into infrastructure buildouts. This creates a seller’s market that Intel hasn’t enjoyed in years.
KeyBanc also upgraded AMD on Tuesday with a $270 price target. AMD stock climbed 6.4% to $220.97. Both companies stand to benefit from the ongoing AI infrastructure expansion.
Manufacturing Operations Gain Traction
Intel’s foundry business is showing real progress. The company’s 18A manufacturing node now delivers yields above 60%. This production milestone could elevate Intel to the number two foundry spot globally, surpassing Samsung while remaining behind Taiwan Semiconductor Manufacturing.
Apple is poised to become an Intel foundry customer. Sources indicate the tech giant will use Intel’s facilities to produce lower-tier MacBook and iPad processors from 2027 onward. Negotiations are also happening around Intel’s next-generation 14A process for budget iPhone chips in 2029.
This foundry expansion represents a strategic pivot for Intel. Historically focused on manufacturing its own designs, the company now courts external clients. This approach generates additional revenue while maximizing fab utilization.
Options traders are showing confidence in Intel’s trajectory. The put/call ratio stands at 0.70, meaning more market participants are positioning for gains than losses. This derivative activity supports the bullish case following the upgrade.
Institutional Interest Remains Strong
Institutional data shows 3,082 funds holding Intel positions. That number increased by 178 funds, or 6.13%, in the most recent quarter. Vanguard Total Stock Market Index Fund leads with 126.3 million shares representing 2.53% ownership.
Vanguard 500 Index Fund holds 123.8 million shares at 2.48%. Geode Capital Management owns 98.8 million shares for 1.98% of the company. Invesco QQQ Trust holds 90 million shares at 1.81%.
Intel’s revenue projection sits at $100.9 billion annually. Analysts forecast non-GAAP earnings of $3.56 per share. The consensus price target of $37.52 now trails the current stock price by a wide margin.
AMD is expected to see server CPU revenue jump at least 50% this year. The company plans similar price increases to Intel. AMD’s MI355 and MI455 GPUs should deliver $14-15 billion in AI revenue annually.
Vinh projects 200,000 MI355 GPU units in the first half of 2026. The MI455 accelerates in the second half with 290,000-300,000 units earmarked for AMD’s Helios rack-scale platform.
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