Intel Stock Receives Bullish Analyst Upgrades Ahead of Earnings

Intel US4581401001

The investment community's view of Intel is undergoing a significant shift. A series of influential analyst upgrades this week has placed the semiconductor giant squarely in the spotlight, driven by fresh insights into its server business and competitive dynamics. The central question now is whether the company can validate this newfound optimism when it reports fourth-quarter results on January 22.

The reassessments began on January 13, when KeyBanc Capital Markets elevated its rating for Intel from "Sector Weight" to "Overweight." The firm attached a price target of $60 to the stock. This bullish move was predicated on supply chain intelligence suggesting Intel's server CPU manufacturing capacity for 2026 is nearly fully booked. According to KeyBanc, demand is so robust that it anticipates price increases of 10% to 15%, which would provide a substantial boost to the company's profit margins.

This analysis was followed just two days later by a notable revision from Citi. Analyst Atif Malik upgraded the shares from a "Sell" to a "Neutral" recommendation, setting a $50 price target. Malik cited capacity constraints at rival TSMC as a key factor, presenting an opportunity for Intel Foundry Services to capture additional orders for artificial intelligence (AI) chips.

Strategic Hiring Signals GPU Market Intent

Beyond the financial commentary, Intel is making strategic personnel moves. The company appointed Eric Demers as its new Senior Vice President of GPU Architecture in January 2026. Demers brings experience from previous roles at Qualcomm, AMD, and ATI. His recruitment is widely interpreted as a clear signal of Intel's serious ambition to challenge the dominance of Nvidia and AMD in the graphics processing unit market.

The Crucial Test: Forthcoming Quarterly Results

While the recent analyst notes are based on forward-looking projections and market observations, the definitive test arrives with the January 22 earnings release. The market consensus expects Intel to post earnings per share of $0.08 for the fourth quarter. This follows a third-quarter performance where the company exceeded revenue expectations with $13.65 billion in sales.

Investor attention will be particularly focused on the progress of Intel's foundry business. Reports of advancements in its 18A manufacturing technology, achieving yields above 60%, have generated positive speculation. Furthermore, potential government subsidies could provide additional leverage for Intel to capitalize on the soaring demand for AI chip production.

Despite the wave of upgrades, a note of caution persists among some market observers. Jefferies, for instance, maintains its "Hold" rating on the stock. Challenges remain in the personal computing segment, where AMD continues to apply competitive pressure with its processors, and Arm-based chips are gaining market share. The upcoming financial report will offer critical evidence on whether Intel has genuinely engineered a sustainable turnaround.