Key Highlights
- Vivek Arya of Bank of America issued a rare double upgrade on Intel, moving directly from Underperform to Buy with a new $135 price target representing a 41% increase
- Agentic AI workloads are projected to expand the server CPU market beyond $170 billion by 2030, benefiting Intel significantly
- The company’s foundry operations are gaining traction with prospective clients like Apple and MediaTek on the radar
- Shares opened at $116.96 on Friday, climbing 9.27% and approaching the 52-week peak of $132.75
- First-quarter results showed EPS of $0.29, dramatically exceeding the $0.01 Wall Street forecast, alongside revenue of $13.58 billion
Shares of Intel (INTC) rocketed 9.27% higher on Friday following an unusually aggressive analyst move from Bank of America — a double-tier upgrade taking the chip giant from Underperform all the way to Buy.
The opening price of $116.96 positions the stock close to its 52-week peak of $132.75. Remarkably, twelve months earlier, shares were languishing near their 52-week bottom of $18.97. The rally represents a staggering 463% climb.
Vivek Arya simultaneously boosted his price objective by approximately 41%, elevating it from $96 to $135. This represents a dramatic reversal for a firm that previously maintained a negative stance on the semiconductor manufacturer.
Arya’s central thesis centers on a simple premise: agentic AI fundamentally alters the CPU opportunity. Unlike conventional AI systems that simply respond to user inputs, agentic AI independently plans, makes decisions, and executes complex tasks — computational patterns that heavily favor CPU architecture.
Bank of America has revised its server CPU market projection upward to exceed $170 billion by 2030, a substantial increase from its previous $125 billion estimate. The firm anticipates Intel capturing approximately 25% of this expanded market — translating to over $40 billion in server CPU revenue.
This updated market outlook prompted Arya to revise his earnings projections significantly upward. He now forecasts Intel delivering more than $6 per share in annual earnings by 2030, compared to his earlier $3 to $4 range.
Foundry Operations Emerge as Compelling Growth Avenue
The bullish call extended beyond CPUs. Arya highlighted Intel Foundry as a significantly undervalued growth opportunity.
He identified potential future clients including Apple, MediaTek, and various ARM architecture chip designers. A recently announced collaboration with Cadence Design Systems was also mentioned as a positive development that could attract additional foundry customers.
Another supporting element of the bullish thesis: Intel remains significantly underrepresented in institutional portfolios. Despite approaching a market capitalization of $588 billion, the stock appears in just 16% of S&P 500 fund holdings. Arya views this as creating room for substantial institutional accumulation as sentiment improves.
Intel has attracted increasing analyst optimism recently. Oppenheimer initiated coverage with an Outperform recommendation. HSBC moved to Buy and established a $95 target. Melius Research maintains a $150 price objective.
On the institutional front, Xponance LLC expanded its Intel position by 8.1% during Q4, acquiring an additional 51,482 shares to reach a total holding of 683,676 shares valued at roughly $25.2 million.
Impressive Q1 Results Bolster the Narrative
Intel’s recent quarterly performance provided additional support for the optimistic outlook.
The chipmaker delivered Q1 EPS of $0.29 compared to consensus expectations of merely $0.01 — exceeding forecasts by $0.28. Revenue reached $13.58 billion, surpassing the $12.32 billion analyst estimate and representing 7.4% year-over-year growth.
Intel provided Q2 2026 EPS guidance of $0.20. The full-year analyst consensus currently stands at $0.63 per share.
The broader Wall Street consensus on INTC remains at Hold, reflecting 11 Buy ratings, 25 Hold ratings, and 2 Sell ratings compiled over the past three months. The average analyst price target of $91.44 trades significantly below current levels.
One development worth noting: EVP April Miller Boise divested 40,256 shares on May 1st at an average of $99.53 per share, decreasing her stake by 27.70%.
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