TLDR
- Intel stock surged 7.3% to $47.29 Tuesday after KeyBanc raised its rating to Overweight with a $60 target price.
- Server CPU supply is almost entirely sold out for 2026, with Intel mulling a 10-15% price increase on processors.
- The company’s 18A manufacturing process now achieves yields over 60%, potentially making Intel the world’s second-largest foundry.
- Apple is set to become an Intel foundry client for MacBook and iPad chips beginning in 2027.
- KeyBanc also upgraded AMD, citing 50% server CPU revenue growth potential and $14-15 billion in AI GPU revenue.
Intel shares hit a new 52-week high Tuesday after receiving a bullish upgrade from KeyBanc. The stock closed at $47.29, up 7.3% for the session.
KeyBanc analyst John Vinh upgraded Intel to Overweight from Sector Weight. He assigned a $60 price target, placing his outlook among the highest on Wall Street. The move came as server CPU demand continues outstripping supply across the semiconductor industry.
Intel has nearly exhausted its server CPU inventory for the entire year. According to Vinh’s research, the company is evaluating a 10-15% average selling price increase. These processors power the data centers that run artificial intelligence applications and cloud computing platforms.
The AI infrastructure buildout shows no signs of slowing. Companies are spending heavily to acquire server hardware capable of handling compute-intensive workloads. This dynamic gives Intel pricing leverage it hasn’t possessed in recent memory.
AMD received the same upgrade from KeyBanc on Tuesday. The analyst set a $270 price target on AMD, which climbed 6.4% to $220.97. Both chipmakers are capitalizing on the surge in data center spending.
Foundry Strategy Takes Shape
Intel’s chip manufacturing division is making measurable gains. The 18A process node now posts yields exceeding 60%. This level of efficiency positions Intel to potentially become the second-largest contract chipmaker globally, behind TSMC but ahead of Samsung.
Apple plans to tap Intel’s foundry for manufacturing needs. The arrangement calls for Intel to produce lower-end MacBook and iPad processors starting in 2027. Discussions are ongoing about using Intel’s 14A process for entry-level iPhone chips by 2029.
The foundry business represents a departure from Intel’s traditional model. For decades, Intel primarily manufactured chips of its own design. Opening facilities to outside customers diversifies revenue streams and improves factory utilization rates.
Market sentiment appears increasingly bullish on Intel. The stock’s put/call ratio registers at 0.70, indicating more traders are betting on upside than downside. This options activity reinforces the positive momentum following the analyst upgrade.
Wall Street Positioning Shifts
Institutional ownership data reveals 3,082 funds now hold Intel positions. That marks an increase of 178 funds, or 6.13%, from the previous quarter. Total institutional shares stand at 3.24 billion.
Vanguard Total Stock Market Index Fund holds the largest position with 126.3 million shares, equal to 2.53% ownership. Vanguard 500 Index Fund owns 123.8 million shares at 2.48%. Geode Capital Management controls 98.8 million shares representing 1.98%.
Intel’s annual revenue forecast reaches $100.9 billion. Projected non-GAAP earnings per share sits at $3.56. The average analyst price target of $37.52 now lags the current stock price, suggesting targets may need upward revisions.
KeyBanc expects AMD’s server CPU revenue to grow at least 50% in 2026. The company will likely implement price increases comparable to Intel’s strategy. AMD’s MI355 and MI455 graphics cards should generate $14-15 billion in AI-related revenue.
Vinh forecasts shipments of 200,000 MI355 GPUs during the first half of 2026. The MI455 model ramps up in the second half, with 290,000-300,000 units designated for AMD’s Helios rack solution.
