Intel shares jumped 4.42% to $93.82 Monday after JPMorgan analyst Harlan Sur upgraded the stock to Neutral from Underweight, pointing to improving server demand, data center growth, and progress in Intel's manufacturing operations. The move came as the stock traded near JPMorgan's $85 price target, which the firm kept unchanged even as it softened its stance, arguing the risk-reward profile is now more balanced after Intel's steep recent slide.
That slide was significant: Intel had fallen 14.18% over the last five trading days heading into Monday, including a nearly 6% drop Saturday tied to comments from Taiwan Semiconductor Manufacturing's leadership about competing in the packaging business Intel relies on. The pullback left Intel down 1.99% over the last 30 trading days, far below its 52-week high of $142.35 and well above its 52-week low of $32.89.
JPMorgan's upgrade cited execution under CEO Lip-Bu Tan as a key factor, along with a custom-chip business that has reached a $2 billion annualized revenue run rate and potential foundry customers lining up for Intel's next-generation manufacturing nodes. The firm also pointed to rising earnings estimates for 2027 and 2028 as evidence that Intel's turnaround efforts are starting to show up in the numbers Wall Street tracks most closely.
Intel wasn't alone in bouncing back Monday. Chip stocks broadly rebounded after the Philadelphia Semiconductor Index strung together an eight-session losing streak, a stretch not seen since 2008, with AMD rising alongside Intel. Whether Monday's rally marks a genuine turning point or a brief reprieve will likely hinge on what Intel's factories and server business deliver next, with the company's upcoming third-quarter earnings report shaping up as the next real test of whether the upgrade was warranted.