Shares of Intel gained on Tuesday after falling on Monday as a rare upgrade from a previously bearish analyst added fresh momentum to the stock’s strong run in 2026.
The chipmaker’s shares rose in early trading, building on a year-to-date surge driven largely by rising demand for central processing units (CPUs) from artificial intelligence hyperscalers.
Intel stock has climbed sharply this year, supported by expectations that AI infrastructure spending will remain a key growth driver.
Analyst upgrades boost sentiment
The latest leg of the rally was triggered after BNP Paribas analyst David O’Connor upgraded Intel to Neutral from Underperform, while raising his price target to $60 from $34.
“Agentic AI is driving very strong demand for server CPU’s with hyperscalers scrambling to secure supply,” O’Connor said in a research note.
The upgrade is notable given that only a small number of analysts maintain bearish ratings on Intel. According to FactSet data, just five out of 49 analysts covering the stock have a Sell or equivalent rating.
Meanwhile, analysts at KeyBanc maintained a bullish stance, reiterating an Overweight rating and a $70 price target.
“The real cyclical recovery has yet to begin,” KeyBanc analysts, led by John Vinh, wrote in a note Monday.
They added that they favor Intel alongside Micron Technology and Nvidia as key beneficiaries of the AI cycle.
“Given the… added durability of AI infra build-out as a sustained demand driver, we believe this recovery can extend at least through 2027,” Vinh added.
AI demand and server CPUs drive outlook
Investor optimism around Intel has been fueled by expectations that AI-related demand will continue to support growth, particularly in the company’s server CPU segment.
HSBC analyst Frank Lee recently upgraded Intel to Buy with a $95 price target, the highest on the Street.
Lee argued that while foundry-related developments have contributed to the stock’s rally, the company’s server CPU business remains underappreciated by the market.
He expects Intel to reallocate advanced manufacturing capacity toward server CPUs, which could drive significant growth starting in 2026.
His forecasts include 20% year-over-year shipment growth and a similar increase in average selling prices, with supply shortages potentially extending into 2027.
The report also highlighted advanced packaging technologies such as EMIB as potential near-term revenue drivers, while noting continued uncertainty around the timing and scale of foundry-related contributions.
Rally builds but valuation concerns linger
Intel’s shares have delivered outsized gains, rising sharply over recent months and posting triple-digit gains over the past year.
The stock has also surged significantly since the start of 2026, supported by strong momentum in AI-driven demand.
Consensus ratings on Intel currently stand at Hold, with an average 12-month price target below recent trading levels, suggesting some concern about valuation following the rapid rally.
The stock had paused on Monday after a multi-session winning streak, potentially reflecting investor repositioning ahead of the company’s upcoming earnings report.
Despite the near-term volatility, the outlook for Intel continues to hinge on the durability of AI infrastructure spending and the company’s ability to capitalize on rising demand for high-performance computing.
Intel is set to announce its quarterly results on April 23, and investors will be watching closely for further confirmation that Intel’s AI-driven growth narrative can translate into sustained financial performance.
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