Bank of America Upgrades Intel, Sets $135 Target on $6 EPS Outlook
INTC•Bank of America upgraded Intel from Underperform to Buy, lifting its price target to $135 from $96 and forecasting over $6 per share in EPS by 2030 on a 25x multiple. It predicts server CPU sales topping $40 billion and cites foundry wins like Google’s 3 million TPU order.
1. Bank of America Upgrade to Buy
Bank of America upgraded Intel from Underperform to Buy, raising its price target to $135 from $96 after reassessing the company’s execution on CPU and foundry strategies.
2. Long-Term EPS and Valuation Basis
The analyst team now projects Intel will generate more than $6 in earnings per share by 2030, applying a 25x multiple to a 2030 EPS estimate of $6.24 and discounting back two years.
3. Server CPU Market Outlook
Intel’s server CPU business is expected to exceed $40 billion in sales by 2030, driven by expansion in AI agent workloads within a projected $170 billion server CPU market.
4. Foundry Deals and Fund Inclusion
The bank highlights key foundry engagements, including Apple M-Series wafers, MediaTek TPU orders, ARM-based server CPUs and a firm order from Google for over 3 million TPUs, noting only 16% of S&P 500 funds currently hold Intel.
