Overview
Bank of America upgraded Intel Corp. (NASDAQ: INTC) from Underperform to Buy, raising its price target to $135 from $96, which sparked a roughly 5% rise in Intel’s pre‑market share price.
Earnings and Valuation
BofA now projects that Intel will generate earnings power exceeding $6 per share by 2030, up from its earlier estimate of $3‑4. The bank applies a 25‑times multiple to its 2030 EPS estimate of $6.24, discounted back two years, to arrive at the $135 target. Previously, BofA used a sum‑of‑parts approach based on 2028 estimates, which it said under‑represented longer‑term CPU and foundry potential.
Revenue Opportunities
The analysts estimate Intel’s server CPU sales will surpass $40 billion by 2030, representing about 25% of a $170 billion total addressable market. They also value the emerging “agentic AI” workload segment, which they size at roughly $70 billion by 2030, as a driver of expanded CPU demand.
Foundry Business Outlook
Potential external‑foundry contracts identified include Apple M‑Series wafer production, MediaTek TPU wafers, Terafab IP and packaging engagements, and other ARM‑based server CPU opportunities. BofA highlighted a recent intellectual‑property collaboration with Cadence on Intel’s 14A process node as a step toward a more sustainable external foundry ecosystem.
Ownership Profile
Despite a market capitalization of approximately $540 billion, making Intel the fifth‑largest U.S. semiconductor and AI‑infrastructure company, only 16% of S&P 500 funds own the stock, the second‑lowest ownership level after SanDisk. The analysts noted that low institutional ownership could act as a catalyst for further price appreciation. For comparison, AMD’s institutional ownership rose 1,400 basis points over the past year alongside a 309% stock gain.
Risks
BofA identified key risks to its bullish case: intensifying competition from ARM‑based and custom chip designs, possible moderation in AI capital‑expenditure, and execution challenges related to Intel’s leading‑edge manufacturing ramp.