New Street Research upgraded Intel to Buy from Neutral and set a $125 price target. Intel shares rose 4% after the upgrade.
The firm expects demand for server CPUs to remain high for several years as agentic AI expands. Analyst Pierre Ferragu said supply constraints are likely to persist while Intel improves its manufacturing capabilities.
New Street estimates Intel’s server capacity could grow by more than 50% in 2027. It projects server CPU revenue will reach $50 billion by 2030.
Intel is scheduled to report third-quarter earnings on October 29. Investors will watch data center margins to assess whether strong demand is translating into profitability.