Intel shares surged 28% year-to-date through January 14, extending an 84% rally from 2025 as analysts upgraded price targets citing stronger chip demand. KeyBanc Capital Markets raised its target to $60 from overweight, while UBS increased its forecast to $49 from $40, both pointing to robust server processor sales and growing foundry momentum.
The semiconductor manufacturer's stock jumped 10.8% on January 9 after CEO Lip-Bu Tan met with President Donald Trump, who publicly praised Intel's U.S.-based production. The federal government holds an 8.9% equity stake in Intel through converted CHIPS Act funds, according to Barchart, though some reports cite a 9.9% stake, a position acquired last August at approximately $20.47 per share that has since more than doubled in value.
At CES 2026 in Las Vegas last week, Intel unveiled its Core Ultra Series 3 processors built on the company's 18A manufacturing process. The chips deliver up to 27 hours of battery life, surpassing Apple's MacBook Air (18 hours) and MacBook Pro (24 hours), while marking Intel's first consumer product on the advanced node.
KeyBanc analyst John Vinh upgraded Intel based on artificial intelligence-driven server CPU demand from hyperscale cloud providers. Supply chain sources indicate Intel has sold out server processor capacity for 2026, enabling potential average selling price increases of 10-15% across its server portfolio.
Intel's 18A process now achieves yields exceeding 60%, supporting the company's goal to become the world's second-largest foundry behind Taiwan Semiconductor Manufacturing. Industry reports suggest Apple is evaluating Intel's 18A process for low-end M-series processors with potential 2027 shipments, plus 14A technology for A-series iPhone chips around 2029.
The company's third-quarter 2025 results showed revenue of $13.7 billion, a 3% year-over-year increase, with gross margins improving to 38.2% from 15% in the same period last year. Client computing revenue reached $8.5 billion, up 5% year-over-year, while data center and AI revenue totaled $4.1 billion.
Microsoft Windows and devices president Pavan Davuluri told Yahoo Finance at CES that Intel's new processors will deliver "faster, more responsive PCs with better value." Forrester senior analyst Alvin Nguyen added that emphasizing improved battery life alongside AI capabilities represents effective consumer messaging.
Intel's stock closed at $37.29 on January 13, surpassing the average analyst price target of $37.24. The consensus rating remains hold among 42 analysts, though five now recommend buy compared to two a month ago, reflecting shifting sentiment toward the company's turnaround execution.
Melius Research upgraded Intel to buy with a $50 price target, while KeyBanc's $60 target represents potential 61% upside from current levels. The company's market capitalization stands at approximately $210.5 billion as manufacturing improvements and AI demand drive renewed investor confidence.
