Intel Shares Jump 9% After BofA Raises Price Target to $135
INTC•Bank of America upgraded Intel shares from Underperform to Buy and lifted its price target to $135 from $96, citing growing server CPU sales and expanding external foundry operations. Analysts project Intel capturing roughly 25% of a $170 billion server CPU market by 2030, boosting long-term earnings visibility.
1. BofA Rating Upgrade and Price Target Increase
Bank of America moved Intel’s rating from Underperform to Buy and raised its price target to $135 from $96, highlighting the company’s improving turnaround and more favorable outlook for its CPU and foundry businesses.
2. Share Price Reaction and Trader Sentiment
Intel shares surged as much as 9% following the upgrade, pushing premarket gains to around 5% and contributing to a broader 2% rally in the semiconductor ETF SOXX. Call options volume outpaced puts by a 3:1 ratio, reflecting bullish positioning among options traders.
3. Server CPU Market Opportunity
Analysts expect Intel’s server processor sales to exceed $40 billion by 2030, capturing roughly 25% of an estimated $170 billion total addressable market, fueled by demand for CPUs to support agentic AI workloads.
4. Foundry Expansion and Long-Term Earnings Outlook
Expanding external foundry operations, including potential Apple M-Series and MediaTek wafer production, add upside, while earnings forecasts have been raised to more than $6 per share by 2030 underpinned by a higher multiple on the revised long-term earnings estimate.
