Intel Rises 5% After BofA Double Upgrade to Buy

Intel (NASDAQ: INTC) shares rose approximately 5% in premarket trading on Friday after Bank of America double-upgraded the stock from Underperform to Buy and raised its price target to $135 from $96.

Rating Change

Previously, Bank of America rated Intel as Underperform with a $96 price target. After the double upgrade, the rating is now Buy with a new price target of $135, representing an increase of about 40% from the previous target.

Analyst Rationale

The Bank of America analyst cited growing confidence in Intel's server CPU opportunity and its external foundry business as the main drivers for the upgrade. The analyst believes Intel is well-positioned to capitalize on increasing demand for server chips and external manufacturing services.

Context

The upgrade comes after a period of challenges for Intel, including intense competition from AMD and NVIDIA in the chip market. However, analysts appear to be seeing a turnaround with Intel's strategic shift toward foundry operations. So far, no other analysts have issued similar comments, but the positive stock movement indicates investor optimism.

What to Make of It

Bank of America's upgrade reflects a shift in outlook for Intel, driven by confidence in the company's strategy. However, investors should monitor ongoing competition and Intel's execution of its foundry plans before making any investment decisions.