Intel shares rose 4.9% to reach a session high near $93 following an upgrade from New Street Research. Analyst Pierre Ferragu raised the rating from Neutral to Buy, setting a price target of $125, which suggests a potential upside of approximately 38%.
The bullish outlook is driven by anticipated demand for server CPUs fueled by agentic AI. Ferragu projects that Intel could increase its server capacity by over 50% by 2027 and estimates that server CPU sales could reach $50 billion by 2030.
Earlier in October, JPMorgan upgraded Intel from Underweight to Neutral with a price target of $85, citing operational improvements under CEO Lip-Bu Tan. This followed a 36% decline in Intel shares from their June peaks.
Intel's Data Center and AI division reported Q2 2026 revenue of $6.3 billion, a 59% year-over-year increase. Operating margins for the segment grew from 16.1% to 39.5% during the same period.
The company is set to release its Q3 earnings report on October 29. Analysts forecast revenue of $16.5 billion, representing a 21% year-over-year increase, and adjusted earnings per share of $0.40.
