On January 13, KeyBanc raised its rating on Intel to Overweight and set a $60 price target, implying a potential 27% upside from recent levels. The upgrade highlights confidence in Intel’s ability to capitalize on accelerating demand for AI server CPUs. This marks the third major analyst house to increase its outlook on Intel since the start of the year, reflecting a growing consensus that the company’s turnaround initiatives are gaining traction in the capital markets.

Intel shares climbed over 7% on the upgrade announcement, with trading volume surging to 167 million shares, nearly double its three-month average of 90 million. Industry reports indicate that Intel’s high-performance server processors for AI workloads are effectively sold out through the end of the year, underscoring tight 2026 supply. Gross margin improved to 35.6% in the latest quarter, driven by higher revenue mix from premium data-center products.

Investors are focused on January 20, when Intel will report fourth-quarter and full-year results. Market participants will look for updates on AI-related revenue growth, cash flow trends and margin targets, as well as progress in its foundry services segment. Management has guided to mid-single-digit percentage growth in quarterly data-center sales and reiterated plans to scale external foundry capacity by 50% year-over-year in 2026, a key factor in the company’s long-term profitability roadmap.