Intel (INTC) Stock Soars 9% Following Unprecedented Double Upgrade From BofA

Key Takeaways

• Vivek Arya at Bank of America issued a rare double-upgrade on Intel, moving from Underperform to Buy and increasing the price target 41% to $135
• Agentic AI demand is projected to expand the server CPU market beyond $170 billion by 2030, providing significant growth opportunities
• The company’s foundry operations represent an additional catalyst, with potential contracts from Apple and MediaTek on the horizon
• Shares opened Friday at $116.96, representing a 9.27% increase, approaching the 52-week peak of $132.75
• First quarter results showed EPS of $0.29, significantly exceeding the $0.01 analyst consensus, while revenue reached $13.58 billion

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Intel (INTC) shares surged 9.27% during Friday’s trading session following an unusual analyst move from Bank of America — a double-tier upgrade shifting the chip giant from Underperform directly to Buy.

Intel Corporation, INTC

Shares began trading at $116.96, hovering close to the 52-week peak of $132.75. This represents a remarkable turnaround from the $18.97 low recorded a year earlier — a staggering 463% gain.

Vivek Arya simultaneously boosted his valuation target nearly 41%, lifting it from $96 to $135. This marks a dramatic reversal from the firm’s previously cautious stance on the semiconductor manufacturer.

Arya’s investment thesis centers on a key technological shift: agentic AI fundamentally alters CPU demand dynamics. While conventional AI systems simply respond to user inputs, agentic AI autonomously plans, makes decisions, and executes complex tasks — operations that require substantial CPU processing power.

Bank of America now projects the server CPU market will exceed $170 billion by 2030, a significant increase from its previous $125 billion forecast. The firm believes Intel could capture approximately 25% of this expanding market — translating to more than $40 billion in server CPU revenue.

This updated market assessment led Arya to revise his earnings projections upward. He now anticipates Intel will deliver over $6 per share in earnings by 2030, compared to his earlier $3 to $4 range.

Foundry Operations Emerging as Key Growth Driver

The bullish call extended beyond CPUs. Arya highlighted Intel Foundry as an undervalued growth opportunity.

He identified Apple, MediaTek, and various ARM-based chipmakers as prospective clients. A recently announced collaboration with Cadence Design Systems was highlighted as a potential catalyst for attracting additional foundry customers.

Another element supporting the bullish outlook: Intel remains significantly under-owned by institutional investors. Despite a market capitalization nearing $588 billion, only 16% of S&P 500 funds currently hold positions in the stock. Arya views this as an opportunity for increased institutional accumulation as sentiment improves.

Bank of America isn’t the only firm turning optimistic on Intel. Oppenheimer recently initiated coverage with an Outperform rating. HSBC upgraded the stock to Buy with a $95 target. Melius Research maintains an even more aggressive $150 price objective.

On the institutional front, Xponance LLC expanded its Intel holdings by 8.1% during Q4, acquiring an additional 51,482 shares to bring its total position to 683,676 shares valued at roughly $25.2 million.

First Quarter Results Exceeded Expectations

Intel’s recent quarterly performance provided additional support for the bullish narrative.

The chipmaker delivered Q1 EPS of $0.29 compared to the consensus forecast of merely $0.01 — crushing estimates by $0.28. Revenue totaled $13.58 billion, surpassing the $12.32 billion analyst projection and representing 7.4% year-over-year growth.

Intel provided Q2 2026 EPS guidance of $0.20. The full-year analyst consensus stands at $0.63 per share.

The overall Wall Street consensus on INTC currently rates as a 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 remains substantially below current trading levels.

One development worth noting: 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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