Intel Corporation shares climbed sharply in pre-market activity, rising 4.9% after BofA Securities issued a double upgrade that lifted its rating from Underperform to Buy and increased its price target from $96 to $135. The brokerage pointed to Intel’s distinctive position to address capacity constraints in leading-edge wafer fabrication and advanced packaging as a central justification for the change.
BofA also materially raised its long-term earnings outlook for integrated device manufacturer operations, now forecasting more than $6 of earnings power per share by 2030. That projection is roughly double the firm’s prior range of $3 to $4 per share. In addition, BofA expects the server CPU market to expand to in excess of $170 billion by 2030, figures the firm cited as part of its rationale for a more bullish stance.
The timing of the BofA action follows a run of foundry-related developments that market participants have interpreted as validating Intel’s foundry comeback narrative. Earlier in the week, reports indicated that Google placed a firm order for more than 3 million Tensor Processing Units to be manufactured at Intel Foundry for 2028. Separately, Nvidia was reported to be evaluating Intel’s advanced 18A process node for a next-generation multi-chip design. Both items were cited as evidence that external customers are engaging with Intel’s manufacturing roadmap.
Analyst attention beyond BofA has also touched parties in the semiconductor ecosystem. Stifel raised its price target on Cadence Design Systems and specifically referenced Cadence’s expanded collaboration with Intel Foundry on the 14A advanced chip process. Stifel’s move was presented in market commentary as an indirect endorsement of Intel’s manufacturing trajectory.
Intel’s pre-market strength stood in contrast to broader market movement on the same trading day. The S&P 500 fell 1.6%, the Dow Jones Industrial Average declined 1.9%, and the Nasdaq Composite slipped 2.0% as technology names retreated from recent highs amid reassessments of AI-driven valuations. That divergence highlights how a high-conviction analyst reversal - particularly from a firm that had previously maintained a bearish rating - can propel a single high-beta AI-momentum stock higher even when market conditions are broadly negative.
Taken together, market observers described the BofA double upgrade as a decisive catalyst that crystallizes a thesis forming over recent weeks: Intel’s foundry business is securing credible external customers, the opportunity for agentic AI CPUs is expanding, and even previously skeptical Wall Street voices are joining the bull camp. The interplay of institutional re-rating and ongoing foundry deal flow is the dynamic cited for INTC’s sharp gain, even as selling pressure gripped much of the semiconductor sector on the same day.
Key points
- BofA upgraded Intel from Underperform to Buy and raised its price target from $96 to $135, citing wafer fabrication and packaging strengths.
- BofA now expects IDMs to achieve more than $6 of earnings power per share by 2030 and projects the server CPU market to exceed $170 billion by 2030.
- Recent foundry-related reports - a large Google TPU order for Intel Foundry and Nvidia's evaluation of Intel's 18A node - plus analyst moves on Cadence are reinforcing the foundry turnaround narrative.
Risks and uncertainties
- Broader market weakness - the S&P 500, Dow, and Nasdaq each fell on the day - could limit upside for semiconductor and tech names despite firm-specific catalysts.
- Reassessments of AI valuations are pressuring technology stocks generally, creating a headwind for sector performance even when individual firms receive positive analyst attention.
- The semiconductor sector was experiencing selling pressure the same day, indicating that firm-level upgrades may not immediately translate into sustained sector-wide gains.
The shifts described reflect analyst judgments and reported customer engagements that market participants have emphasized in recent commentary. The balance between institutional re-rating and broader market conditions will shape near-term price action for Intel and related semiconductor equities.