New Street upgrades Intel to Buy with $125 target, sparking 4‑5% stock rally
New Street Research analyst Pierre Ferragu upgraded Intel (INTC) to Buy from Neutral and set a $125 price target, citing a prolonged server‑CPU shortage driven by AI. The upgrade lifted Intel shares 4%‑5% in trading, while data‑center revenue jumped 59% YoY to $6.3 billion in Q2 with a 39.5% operating margin. Intel is slated to report Q3 results on Oct. 29, with management guiding $15.8‑$16.8 billion of revenue, a 42% non‑GAAP gross margin and $0.38 non‑GAAP EPS. KeyBanc also maintained an Overweight rating with a $155 target and projected Q3 revenue of $16.9 billion and EPS of $0.46, and CEO Lip‑Bu Tan bought roughly $10 million of stock.
Why it matters
The upgrade and higher price targets suggest analysts see a durable earnings tailwind from AI‑driven server demand, which could support Intel’s valuation ahead of its Q3 earnings. KeyBanc’s higher revenue and EPS forecasts imply upside beyond consensus, potentially boosting investor expectations for the upcoming results.
Key facts
- 1New Street Research upgraded Intel to Buy from Neutral with a $125 price target. finance.yahoo.com
- 2Intel shares rose 4% after the upgrade. finance.yahoo.com
- 3Data Center and AI revenue grew 59% YoY to $6.3 billion in Q2. finance.yahoo.com
- 4The segment's operating margin reached 39.5%, up from 16.1% a year earlier. finance.yahoo.com
- 5Management guided Q3 2026 revenue of $15.8 billion to $16.8 billion, a 42% non‑GAAP gross margin and $0.38 non‑GAAP EPS. finance.yahoo.com
- 6KeyBanc maintained an Overweight rating with a $155 price target and projected Q3 revenue of $16.9 billion and EPS of $0.46. investing.com
Summary written by AlphAI AI Desk from 5 of 5 sources. Not investment advice. Figures are as stated by the linked sources.