Why Intel Stock Popped Today

• KeyBanc expert John Vinh upgraded Intel to overweight this morning.

• Strong request for AI chips has Intel sold retired and acceptable to rise prices.

• 10 stocks we similar amended than Intel ›

Intel (NASDAQ: INTC) banal jumped 6.1% done 11:05 a.m. ET Tuesday aft KeyBanc expert John Vinh upgraded Intel to "overweight" and assigned the semiconductor banal a $60 terms target.

Intel costs little than $47 adjacent aft today's terms surge -- implying there's different 28% imaginable nett remaining.

"We expect outsize information halfway request from hyperscalers this twelvemonth to beryllium a important tailwind for DCAI," predicts Vinh. (DCAI refers to Intel's Data Center and Artificial Intelligence business, Intel's 3rd largest successful presumption of gross -- but its 2nd astir profitable according to information from S&P Global Market Intelligence.)

"INTC is astir sold retired for the twelvemonth successful server CPU," continues the analyst, and with request truthful strong, Intel has pricing powerfulness and is reportedly "considering a 10-15% ASP increase." (ASP is mean selling price.)

Intel's foundry concern is besides doing well, "with 18A yields improving to implicit 60%." That's not arsenic bully arsenic TSMC's (NYSE: TSM) 70% to 80% yield, but amended than Samsung's "less than 40%."

Finally, Vinh notes Apple (NASDAQ: AAPL) whitethorn bargain 18A "low-end M- bid processors for MacBooks and iPads" successful 2027, and 14A "low-end mobile A-series processors for iPhones successful 2029."

Many things look to beryllium going close for Intel, but 1 large happening is inactive precise wrong:

According to S&P Global data, Intel turned profitable again for the archetypal 3 quarters of 2025, but its escaped currency travel is inactive moving profoundly successful the reddish -- $8.4 cardinal burned successful conscionable 3 quarters of work.

Even if Intel turns profitable this twelvemonth (or adjacent year, arsenic astir analysts expect), until they get their FCF numbers successful the greenish again, it's going to beryllium hard for maine to telephone Intel banal a buy.

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