Intel Shares Jump 5% After BofA Upgrade to Buy, $135 Target
Bank of America upgraded Intel (INTC) to Buy from Underperform, raising its price target to $135 from $96, citing improved visibility in server processors and foundry opportunities. Shares gained 5% in premarket trading.
Key Numbers
Intel (NASDAQ:INTC) shares rose approximately 5% in premarket trading after Bank of America upgraded the stock twice, moving its rating from Underperform to Buy and increasing its price target to $135 from $96. The investment bank cited improving visibility around Intel’s server processor business and expanding opportunities within its external foundry operations as key reasons for the more optimistic outlook.
Rating Change
- Previous Rating: Underperform
- New Rating: Buy
- Previous Price Target: $96
- New Price Target: $135
Analyst Rationale
Analysts see clear growth prospects in Intel’s server CPU segment, driven by rising demand for data centers and cloud computing. Additionally, the foundry business offers incremental revenue opportunities as Intel aims to become a key player in chip manufacturing for other companies.
Context
The upgrade comes after a period of pressure on Intel shares due to competition from AMD and NVIDIA. However, investors appear to respond positively to the improved outlook. No other analyst changes have been reported yet.
What to Make of It
The upgrade reflects growing confidence in Intel’s strategy, but investors should monitor execution in the competitive foundry market.
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