Key Highlights
- Bank of America issued a rare double-upgrade on Intel, moving from Underperform directly to Buy, propelling shares up approximately 5% in early trading
- The firm increased its price target significantly from $96 to $135, projecting enhanced earnings capability extending to 2030
- Analysts project Intel’s server CPU revenue could surpass $40 billion by decade’s end, capturing roughly 25% of a $170 billion addressable market
- The firm highlighted Intel’s unusually low institutional presence — owned by merely 16% of S&P 500 funds — as a possible bullish catalyst moving forward
- Risks remain, including ARM architecture threats, potential AI spending deceleration, and manufacturing execution uncertainties
Shares of Intel (INTC) surged approximately 5% during premarket hours on June 11, 2026, following Bank of America’s striking decision to issue a double-upgrade — elevating the chipmaker from Underperform straight to Buy — while simultaneously raising its price objective from $96 to $135.
This represents a remarkable reversal for the financial institution, which had maintained a pessimistic stance on the semiconductor giant.
The dramatic rating change stems from heightened conviction in two critical business segments: Intel’s data center CPU operations and its emerging external foundry services. BofA analysts now project Intel can achieve earnings capacity exceeding $6 per share by 2030, a substantial increase from earlier forecasts of $3 to $4.
To arrive at the $135 price target, the firm applied a 25x earnings multiple to its 2030 EPS projection of $6.24, then discounted the figure back two years. The analysts acknowledged their previous sum-of-parts valuation approach centered on 2028 figures was undervaluing the company’s long-term potential.
Data Center Processors and the AI Revolution
Regarding product revenue, BofA forecasts Intel’s server processor business will generate more than $40 billion annually by 2030. This would constitute approximately 25% of what analysts estimate as a $170 billion total market opportunity.
The firm explicitly connects this projection to artificial intelligence expansion. As AI applications evolve toward agentic computing — where systems operate independently rather than merely responding to user queries — CPUs assume expanded responsibilities beyond conventional server tasks. BofA estimates this agentic AI segment could reach approximately $70 billion by 2030.
This represents a significant reconceptualization of Intel’s strategic positioning within the AI computing ecosystem.
External Manufacturing Services Gaining Traction
Regarding Intel’s foundry ambitions, BofA identified multiple prospective customer agreements currently in development. These opportunities span Apple M-Series chip production, MediaTek TPU manufacturing, Terafab intellectual property and advanced packaging services, plus ARM-based server processor contracts.
The analysts 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 sustainable third-party foundry business model.
A particularly noteworthy observation from BofA’s analysis: Intel’s institutional investor base remains remarkably thin. Despite commanding a market capitalization near $540 billion — ranking it fifth among American semiconductor and AI infrastructure companies — Intel appears in portfolios of only 16% of S&P 500 index funds.
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 over the preceding year while shares climbed 309%. The suggestion: Intel’s ownership levels have substantial room for expansion, potentially providing stock price support.
The firm did acknowledge meaningful headwinds. Competition from ARM-based architectures and custom silicon designs poses legitimate threats. Additionally, artificial intelligence infrastructure spending could moderate, and Intel must successfully execute its advanced manufacturing roadmap — an area where the company has previously encountered difficulties.
Corporate insider activity shows no confidence signals. Throughout the past three months, insiders divested $6.5 million in shares with zero offsetting purchases documented.
Intel shares were changing hands around $112.90 during morning trading, representing an increase from the previous closing price near $107.
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