Key Highlights
- Vivek Arya of Bank of America issued a rare double upgrade on Intel, moving from Underperform to Buy with a $135 price targetâa 41% increase
- Agentic AI applications are projected to expand the server CPU market beyond $170 billion by decade’s end
- The foundry division represents a significant growth opportunity, with prospective clients like Apple and MediaTek on the horizon
- Shares began Friday trading at $116.96, climbing 9.27% and approaching the 52-week peak of $132.75
- First quarter results showed EPS of $0.29, significantly surpassing the $0.01 estimate, alongside $13.58 billion in quarterly revenue
Intel (INTC) shares surged 9.27% during Friday’s session following an unusual analyst move from Bank of Americaâa double upgrade that leapfrogged the stock from Underperform directly to Buy.
Trading commenced at $116.96, hovering near the 52-week peak of $132.75. Compared to twelve months earlier when shares traded close to $18.97, the chipmaker has delivered a remarkable 463% gain.
Vivek Arya simultaneously boosted his price objective nearly 41%, elevating it from $96 to $135. This represents a dramatic reversal from the firm’s previously cautious stance on the semiconductor giant.
Arya’s thesis centers on a compelling premise: agentic AI fundamentally alters CPU economics. While conventional AI simply responds to user inputs, agentic AI actively plans, makes decisions, and carries out complex tasksâoperations that place substantial demands on CPU resources.
Bank of America has revised its server CPU market projection upward to exceed $170 billion by 2030, a significant increase from the previous $125 billion forecast. The firm anticipates Intel capturing approximately 25% of this expanded marketâtranslating to more than $40 billion in server CPU revenue alone.
This enhanced market outlook prompted Arya to revise his earnings projections substantially. He now anticipates Intel delivering over $6 per share in earnings by 2030, compared to his earlier forecast of $3 to $4.
Foundry Operations Gain Investor Attention
The bullish call extended beyond processors. Arya highlighted Intel Foundry as an overlooked catalyst for future expansion.
He identified prospective clients including Apple, MediaTek, and additional ARM-based semiconductor companies. A recent collaboration with Cadence Design Systems was mentioned as a potential trigger for attracting additional foundry customers.
Another element supporting the bullish thesis: Intel remains surprisingly underrepresented in institutional portfolios. With a market capitalization nearing $588 billion, only 16% of S&P 500 funds currently hold positions. Arya views this as an opportunity for increased institutional accumulation as sentiment improves.
Intel has attracted positive attention from multiple research firms recently. Oppenheimer initiated coverage with an Outperform recommendation. HSBC elevated its rating to Buy with a $95 target. Melius Research has established a $150 price objective.
Among institutional investors, Xponance LLC expanded its Intel holdings by 8.1% during the fourth quarter, acquiring an additional 51,482 shares to reach a total position of 683,676 shares valued at roughly $25.2 million.
Impressive Q1 Results Bolster Bullish Case
Intel’s recent quarterly performance provided additional support for the optimistic narrative.
The semiconductor manufacturer posted first quarter EPS of $0.29 compared to the consensus forecast of merely $0.01âexceeding expectations by $0.28. Revenue totaled $13.58 billion, surpassing the anticipated $12.32 billion and representing 7.4% year-over-year growth.
Intel established Q2 2026 EPS guidance at $0.20. The full-year analyst consensus stands at $0.63 per share.
The Street’s aggregate rating on INTC remains at Hold, reflecting 11 Buy ratings, 25 Hold ratings, and 2 Sell ratings compiled over the previous three months. The consensus price target of $91.44 remains considerably below current trading levels.
Notably, EVP April Miller Boise divested 40,256 shares on May 1st at an average price of $99.53, trimming her stake by 27.70%.
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