Key Takeaways
- Bank of America elevated Intel from Underperform directly to Buy, propelling shares approximately 5% higher in premarket activity
- The firm increased its price objective to $135 from $96, projecting enhanced earnings capacity extending to 2030
- Analysts forecast Intel’s server CPU revenue will surpass $40 billion by decade’s end, capturing roughly 25% of a $170B addressable market
- BofA highlighted Intel’s unusually thin institutional ownership — present in only 16% of S&P 500 fund portfolios — as a possible growth trigger
- Notable headwinds include ARM-architecture rivals, potential AI spending deceleration, and manufacturing execution uncertainties
Shares of Intel (INTC) climbed approximately 5% during premarket hours on June 11, 2026, following Bank of America’s aggressive rating revision — elevating the chipmaker from Underperform straight to Buy — while simultaneously boosting its price objective from $96 to $135.
This represents a dramatic reversal from the firm’s previously cautious stance on the semiconductor giant.
The ratings shift stems from increased conviction in two critical segments: Intel’s server processor portfolio and its external manufacturing services. BofA analysts now project the company can achieve earnings strength exceeding $6 per share by the end of the decade, substantially higher than their previous $3 to $4 forecast.
The firm calculated its $135 target by applying a 25x earnings multiple to its projected 2030 EPS capability of $6.24, then discounting that figure back two years. Analysts noted their earlier sum-of-parts valuation framework using 2028 projections was undervaluing the company’s long-term potential.
Server Processors and the Artificial Intelligence Factor
Regarding product revenues, BofA anticipates Intel’s data center CPU sales will climb beyond $40 billion by 2030. This projection would give Intel approximately 25% penetration of what the bank estimates as a $170 billion total available market.
The analysts connected this forecast directly to artificial intelligence trends. As AI applications evolve toward agentic architectures — where systems operate independently rather than merely responding to user queries — the processor’s function extends well beyond conventional server operations. BofA estimates this agentic AI segment represents approximately $70 billion in opportunity by 2030.
This perspective significantly repositions Intel within the broader AI technology landscape.
Manufacturing Services Division Gains Momentum
Regarding Intel’s foundry operations, BofA identified multiple prospective customer agreements currently under discussion. These opportunities span Apple M-Series chip production, MediaTek TPU manufacturing, Terafab intellectual property and advanced packaging services, plus ARM-architecture server processor projects.
The bank also referenced a recent intellectual property partnership between Intel and Cadence focused on Intel’s 14A manufacturing process. This collaboration is viewed as strengthening the foundation for a more sustainable external foundry customer base.
A particularly noteworthy observation in BofA’s analysis: Intel’s institutional ownership remains remarkably thin. Despite commanding a market capitalization near $540 billion — ranking it fifth among U.S. semiconductor and AI infrastructure companies — Intel appears in merely 16% of S&P 500 fund holdings.
This positions it as the second-least held stock within its peer group, trailing only SanDisk.
BofA drew parallels to AMD, where institutional ownership expanded by 1,400 basis points during the past year while the stock appreciated 309%. The suggestion: Intel’s ownership levels have substantial room to expand, potentially providing stock price support.
The bank acknowledged significant challenges ahead. Competition from ARM-based architectures and custom silicon designs presents ongoing threats. Additionally, AI infrastructure spending could moderate, and Intel must successfully deliver on its advanced manufacturing roadmap — an area where execution has faltered previously.
Corporate insiders have shown no purchasing activity. During the last three months, company insiders divested $6.5 million in shares with zero recorded purchases.
The stock traded around $112.90 during morning trading hours, advancing from its previous closing price near $107.
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