Intel (INTC) Stock Climbs 5% After Bank of America’s Dramatic Double Upgrade

Key Takeaways

• Bank of America executed a rare double upgrade on Intel, jumping from Underperform straight to Buy, sending shares up approximately 5% during premarket hours
• The investment bank increased its price target significantly to $135 from $96, projecting enhanced earnings capacity extending to 2030
• BofA anticipates Intel’s server CPU revenue reaching beyond $40 billion by decade’s end, capturing roughly 25% of a $170B addressable market
• The firm highlighted Intel’s remarkably low institutional ownership — present in only 16% of S&P 500 fund portfolios — as a possible growth driver
• Notable headwinds include ARM architecture competition, potential AI spending deceleration, and chip manufacturing execution uncertainties

Shares of Intel (INTC) surged approximately 5% during premarket trading on June 11, 2026, following an unusually aggressive rating change from Bank of America. The firm skipped the neutral category entirely, elevating Intel from Underperform directly to Buy while simultaneously raising its price objective from $96 to $135.

Intel Corporation, INTC

This represents a remarkable reversal from an institution that had maintained a pessimistic stance on the chipmaker.

The upgraded outlook stems from increased analyst conviction across two strategic areas: Intel’s data center CPU portfolio and its contract manufacturing services. BofA now projects Intel can achieve earnings capability exceeding $6 per share by 2030, a substantial upgrade from earlier forecasts of $3 to $4.

The firm arrived at its $135 valuation by applying a 25x earnings multiple to its 2030 EPS projection of $6.24, then discounting the figure backward two years. According to analysts, their previous valuation framework using sum-of-parts analysis anchored to 2028 figures failed to capture the company’s full potential.

Data Center Processors and Artificial Intelligence Demand

Regarding product revenue, BofA projects Intel’s server processor sales will surpass $40 billion by 2030. This would constitute approximately 25% of what analysts estimate as a $170 billion total market opportunity.

The assessment connects directly to artificial intelligence evolution. As AI applications transition toward agentic frameworks — where systems operate independently rather than merely responding to user inputs — processors take on expanded responsibilities beyond conventional server functions. BofA estimates this agentic AI segment at roughly $70 billion by the end of the decade.

This perspective repositions Intel’s strategic value within the broader AI infrastructure landscape.

Contract Manufacturing Gaining Momentum

Concerning Intel’s foundry services, BofA identified multiple prospective agreements currently in development. These encompass Apple M-Series chip production, MediaTek TPU manufacturing, Terafab intellectual property and advanced packaging services, plus ARM-based server processor projects.

The bank also referenced a recent intellectual property partnership between Intel and Cadence focused on Intel’s 14A process technology. This collaboration is viewed as strengthening the foundation for a sustainable external manufacturing business.

One particularly interesting data point from BofA’s research: Intel’s institutional investor base remains unusually thin. Despite maintaining a market valuation near $540 billion — positioning it as the fifth-largest among American semiconductor and AI infrastructure companies — Intel appears in portfolios of merely 16% of S&P 500 funds.

This makes it the second-least held stock within its peer group, trailing only SanDisk.

BofA referenced AMD as a comparable case study, noting institutional ownership there increased 1,400 basis points during the past year while the stock price jumped 309%. The suggestion: Intel ownership has significant headroom for expansion, potentially providing share price support.

The bank acknowledged meaningful risk factors. Competition from ARM architecture designs and application-specific chips poses ongoing challenges. Additionally, corporate AI infrastructure investment could decelerate, and Intel must successfully deliver on its advanced manufacturing roadmap — an area where execution has faltered previously.

Corporate insiders have shown no recent confidence through purchases. During the trailing three-month period, insiders divested $6.5 million in shares with zero buying activity recorded.

Shares traded near $112.90 during morning hours, representing an increase from the previous closing price around $107.