Intel Corporation (INTC) shares surged 9.27% on Thursday, closing at $116.96, as the chipmaker benefited from a rare double upgrade by Bank of America and a report of a massive order from Google. The stock also rode a broader semiconductor rally, with the PHLX Semiconductor Index jumping 7.9%.
Bank of America's Bullish Call
Bank of America analyst Vivek Arya upgraded Intel to Buy from Underperform, raising the price target to $135 from $96. The upgrade reflects growing confidence in Intel's ability to address industry constraints in leading-edge wafers and packaging, as well as its potential to supply into a much larger agentic CPU market. Arya also raised the bank's 2030 server CPU market estimate to over $170 billion, up from $125 billion, calling agentic AI 'a powerful demand accelerant that expands the CPU opportunity and lifts both x86 incumbents and ARM challengers.'
Google Order Fuels Foundry Optimism
The rally was further fueled by a report from The Information, cited by Reuters, that Google has placed an order for over three million tensor processing units from Intel for delivery in 2028. While Reuters could not confirm the story, and Intel declined to comment, the report is seen as a key validation of Intel's foundry ambitions. Analysts view it as evidence that major AI players are seeking to diversify their supply chains away from Taiwan Semiconductor Manufacturing Co. (TSM).
Market Context and Sector Rally
The surge in Intel shares came amid a strong rebound in U.S. stocks. The Dow Jones Industrial Average rose 1.86%, the S&P 500 gained 1.75%, and the Nasdaq Composite jumped 2.54% to 25,809.66. The PHLX Semiconductor Index posted its largest one-day gain since April 2025, according to Reuters, underscoring the broad-based strength in chip stocks.
Analyst Sentiment and Price Targets
Despite the rally, Intel shares remain below their 52-week high of $132.75, which was reached earlier this year. The stock's 52-week low stands at $18.96. According to Google Finance, 39 analysts have tracked Intel over the past three months, with 11 Buy ratings, 26 Hold ratings, and 2 Sell ratings. The average 12-month price target is $90.82, well below Thursday's close, though the highest target is $150.
Implications for the Semiconductor Industry
The developments highlight the growing importance of AI and custom silicon in the semiconductor industry. Intel's foundry business, which aims to compete with TSMC, is seen as a key growth driver. The reported Google order, if confirmed, would represent a significant win for Intel's foundry operations and could pave the way for additional orders from other major tech companies.
As the AI boom continues to reshape the chip landscape, Intel's ability to capitalize on its manufacturing capabilities and CPU expertise will be closely watched by investors. The company's market capitalization now stands at approximately $587.84 billion.
