Key Highlights
- Bank of America executed a rare double-upgrade on Intel, moving from Underperform directly to Buy, sparking a ~5% premarket rally
- The firm’s price target jumped to $135 from $96, reflecting increased confidence in earnings growth through decade’s end
- Analysts project Intel’s server CPU revenue could surpass $40 billion by 2030, capturing roughly 25% of a $170B addressable market
- Intel’s unusually low institutional ownership — just 16% among S&P 500 funds — presents a significant upside opportunity
- Remaining headwinds include ARM-based chip threats, potential AI spending slowdowns, and manufacturing execution uncertainties
Shares of Intel (INTC) stock surged approximately 5% during premarket hours on June 11, 2026, following a significant rating change from Bank of America. The firm leapfrogged two rating levels, upgrading the chipmaker from Underperform straight to Buy, while simultaneously increasing its price objective from $96 to $135.
This represents a dramatic reversal from the bank’s previously cautious stance on the semiconductor giant.
The revised outlook stems from increased optimism surrounding two critical business segments: Intel’s data center CPU operations and its emerging external foundry services. BofA analysts now project the company can achieve annual earnings exceeding $6 per share by decade’s end, substantially higher than their earlier $3 to $4 forecast.
To arrive at the $135 price target, the bank applied a 25x earnings multiple to their projected 2030 EPS capability of $6.24, then discounted the figure back over a two-year period. Analysts acknowledged their previous valuation approach using 2028 sum-of-parts methodology was undervaluing the company’s long-term potential.
Data Center CPUs and the Expanding AI Opportunity
Regarding product revenue, BofA forecasts Intel’s data center processor sales will climb above $40 billion annually by 2030. This projection positions Intel to claim approximately 25% of what analysts estimate will be a $170 billion total market opportunity.
The analysis emphasizes a crucial connection to artificial intelligence infrastructure. As AI applications evolve toward agentic AI systems — where AI models operate autonomously rather than simply responding to user queries — the demand for powerful CPUs extends well beyond conventional server tasks. BofA estimates this emerging agentic AI sector alone represents a $70 billion market opportunity by the end of the decade.
This perspective significantly reframes how Intel fits into the broader AI computing landscape.
External Foundry Operations Gain Momentum
Regarding Intel’s foundry ambitions, BofA highlighted multiple prospective customer agreements currently in development. The potential deal pipeline includes Apple’s M-Series chip production, MediaTek TPU manufacturing, Terafab intellectual property and advanced packaging services, plus ARM-architecture server processor opportunities.
The analysts also referenced a recent intellectual property partnership between Intel and Cadence focused on Intel’s 14A manufacturing process node. This collaboration signals progress toward establishing a sustainable third-party foundry business model.
A particularly noteworthy observation from the BofA analysis concerns Intel’s institutional investor base. Despite commanding a market capitalization approaching $540 billion — ranking it fifth among U.S. semiconductor and AI infrastructure companies — only 16% of S&P 500 funds hold positions in Intel.
This makes the stock the second least-held name in its sector, trailing only SanDisk.
BofA drew parallels to AMD, where institutional fund ownership increased by 1,400 basis points over the previous twelve months, coinciding with a 309% stock price appreciation. The suggestion is clear: meaningful upside could materialize as institutional investors increase their Intel allocations.
The bank did acknowledge continuing risks facing the company. Competition from ARM-based architectures and custom silicon designs poses ongoing challenges. Additionally, any deceleration in AI-related capital expenditures could impact demand, and Intel must still successfully execute its advanced manufacturing roadmap — an area where the company has previously encountered difficulties.
Insider trading activity hasn’t signaled confidence. During the most recent three-month period, company insiders sold $6.5 million in shares while recording zero purchases.
As of the morning trading session, Intel stock was changing hands near $112.90, representing a gain from the previous closing price around $107.
