Intel Corp (NASDAQ:INTC, XETRA:INL) scored a double upgrade to Buy from Underperform by Bank of America, which raised its price objective to $135 from $96 on higher confidence in the chipmaker's ability to capitalize on growing opportunities in central processing units and contract manufacturing.
Analysts now project Intel's total calendar year 2030 earnings per share power at more than $6, up from a prior estimate of $3 to $4, driven by expectations that agentic CPU sales could surpass $40 billion and external foundry revenue could exceed $45 billion by 2030.
Shares of Intel were up over 5% on Thursday.
Bank of America now expects Intel's server CPU sales to reach more than $40 billion by 2030, representing roughly 25% share of what it sizes as a $170 billion-plus total addressable market. For its foundry business, the bank flagged potential engagements including Apple M-Series wafers, MediaTek TPU wafers, Terafab IP and packaging, ARM-based server CPUs, and edge AI expansion into client computing.
Analysts also pointed to Intel's recent Cadence "14A node" IP sign-up and Terafab engagements as supportive data points that help build longer-term foundry visibility and a more sustainable IP ecosystem.
The bank flagged Intel's ownership profile as a potential catalyst for further stock gains.
Despite a market capitalization of approximately $540 billion, Intel remains the second-least owned semiconductor and AI infrastructure stock in the S&P 500, with just 16% institutional ownership as of May 2026.
Bank of America drew a comparison to AMD, where ownership rose roughly 1,400 basis points year-over-year to 39% in May, a period during which AMD shares gained more than 300%.
Key risks to the outlook include intensifying competition from ARM-based and custom chip designs, potential moderation in AI capital expenditure affecting CPU demand, and execution risk in both leading-edge design and foundry operations.