After several years of underperformance, Intel has seen five major Wall Street firms raise their ratings on the stock since November 2025. Analysts at RBC Capital Markets and UBS both upgraded Intel from "Sector Perform" to "Outperform," citing the company’s strengthened balance sheet and early traction in AI chip manufacturing. Jefferies followed with a similar upgrade, noting that Intel’s revenue mix is stabilizing and pointing to a 5% year-over-year increase in client computing segment sales to $8.5 billion in Q3 2025 as evidence of renewed momentum. These moves mark the first cluster of upgrades on the name since mid-2023, underscoring a shift in sentiment among investors who had grown wary of prolonged project delays and market share losses.

Intel is scheduled to report fourth-quarter results on January 22, with the Zacks Consensus estimating revenue of $13.37 billion and earnings per share of $0.08. While those figures would represent modest year-over-year declines driven by product transitions, management’s 2026 guidance is expected to highlight a return to positive top-line growth and margin expansion. Investors will be watching for continued improvement in free cash flow—which turned positive in Q3 2025—and a further reduction in total debt, already down by $3 billion since the end of 2024. The outlook for data center revenue is also under the microscope, as custom AI processor contracts for key hyperscale clients could boost that division by as much as 10% in the coming year.

Intel’s recent launch of its Core Ultra Series 3 processors on the 18A process node represents its most advanced U.S.-manufactured technology to date. Reportedly beginning high-volume production weeks ahead of competitors, these chips are slated to power over 200 AI-capable PC designs in 2026 and address surging demand in gaming and edge applications. This technical leap, combined with ongoing cost optimization initiatives, has already helped lift gross margin back above 35% in Q3 2025. With the client computing group accounting for 62% of total revenue and expected to grow further on these design wins, Intel is positioning itself to regain market share from rival foundries and support sustained earnings growth throughout 2026.