Bank of America Lifts Intel to Buy, Sets $135 Target on $6.24 EPS Forecast
BAC•Bank of America raised Intel’s rating to Buy, boosted its price target to $135 and applied a 25x multiple to projected 2030 earnings of $6.24 per share, up from $3–4. It expects server CPU sales above $40 billion by 2030 and cites sub-16% institutional ownership as an upside catalyst.
1. Bank of America Upgrade and Price Target
Bank of America upgraded Intel's rating to Buy, raising its price target from $96 to $135 by applying a 25x multiple to a projected $6.24 per share of earnings power in 2030, compared with its prior $3–4 estimate.
2. Server CPU Opportunity
It projects Intel's server CPU sales will exceed $40 billion by 2030, capturing roughly 25% of a $170 billion total addressable market, driven by expanding workloads in agentic AI that elevate CPU roles beyond traditional tasks.
3. Foundry Business Pipeline
The foundry segment benefits from potential deals including Apple M-Series wafers, MediaTek TPU wafers, ARM-based server CPUs and packaging agreements, alongside an IP collaboration on Intel’s 14A node, which could build a more robust external manufacturing ecosystem.
4. Ownership Dynamics and Key Risks
With only about 16% institutional ownership in S&P 500 funds, under the group average, Intel’s shares may see additional demand; however, accelerated competition from ARM-based and custom chips, AI spending moderation and manufacturing execution risks could temper gains.
