What Happened?
Shares of computer processor maker Intel (NASDAQ: INTC) jumped 6.2% in the morning session after Keybanc upgraded the stock's rating to 'Overweight' from 'Sector Weight' and set a new price target of $60.
The analyst behind the upgrade, John Vinh, cited strong server demand related to artificial intelligence as the primary reason for the more positive outlook. Demand from data centers was reportedly so high that Intel was largely sold out of its server central processing units (CPUs) for 2026. This strength in demand led the company to consider raising the average selling price of these chips by 10% to 15%. The upgrade reflected growing confidence in Intel's position to benefit from the expansion in data center computing and AI.
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What Is The Market Telling Us
Intel’s shares are extremely volatile and have had 40 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 6.6% on the news that the company showcased its new, advanced processors for AI-powered PCs and gaming devices at the CES 2026 trade show.
The chipmaker unveiled its Panther Lake and Core Ultra Series 3 processors, the first to be built on its advanced 18A manufacturing process. This new technology was engineered to deliver significantly better performance and efficiency for AI and computing needs. Intel's announcements targeted the growing markets for AI-powered laptops and handheld gaming devices. To further strengthen its strategy in artificial intelligence, Intel also revealed a partnership with Nvidia to integrate its processors with Nvidia's graphics processing units (GPUs) for use in AI server systems.
Intel is up 19.4% since the beginning of the year, and at $47.02 per share, has set a new 52-week high. Investors who bought $1,000 worth of Intel’s shares 5 years ago would now be looking at an investment worth $825.67.
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