Intel (INTC) Stock: Shares Hit 52-Week High on Server Chip Shortage

TLDR

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Intel stock climbed 7.3% to $47.29 on Tuesday after KeyBanc upgraded shares to Overweight with a $60 price target.
Server CPU supply is nearly sold out for 2026, with Intel considering a 10-15% price increase on chips.
The company’s 18A manufacturing process now shows yields above 60%, potentially making Intel the second-largest foundry.
AMD also received an Overweight rating with projections for 50% server CPU revenue growth and $14-15 billion in AI GPU sales.
Apple is expected to become an Intel foundry customer for MacBook and iPad processors starting in 2027.

Intel shares surged Tuesday after KeyBanc upgraded the stock to Overweight. The chipmaker hit a new 52-week high of $47.29, up 7.3% for the session.

Intel Corporation, INTC

Analyst John Vinh set a $60 price target on Intel. That ranks among the highest estimates on Wall Street. The upgrade centered on tight server CPU supply and strong AI infrastructure demand.

Intel has nearly sold out its server CPU inventory for 2026. The company is now weighing a 10-15% price increase to capitalize on the shortage. These chips power data centers running AI workloads and cloud computing operations.

The artificial intelligence boom continues to drive demand for server processors. Companies are racing to build out infrastructure to support AI applications. This has created a supply crunch that benefits Intel’s pricing power.

AMD received a similar upgrade from KeyBanc on the same day. The analyst firm raised AMD to Overweight with a $270 price target. AMD stock jumped 6.4% to $220.97 on the news.

Foundry Business Shows Progress

Intel’s manufacturing division is making headway. The 18A process now achieves yields exceeding 60%. This production efficiency could position Intel as the second-largest foundry globally, trailing only TSMC but ahead of Samsung.

Apple appears ready to tap Intel’s foundry services. The iPhone maker plans to use Intel facilities for lower-end MacBook and iPad processors beginning in 2027. Talks are underway about using Intel’s 14A process for budget iPhone chips in 2029.

The foundry strategy marks a shift for Intel. Opening manufacturing capacity to external customers creates new revenue opportunities. It also helps the company better utilize expensive fabrication plants.

Options market data shows bullish sentiment. Intel’s put/call ratio sits at 0.70, indicating more traders are betting on upside than downside. This aligns with the positive momentum following the upgrade.

AMD Set for Strong Year

KeyBanc expects AMD’s server CPU revenue to grow at least 50% this year. The company will likely implement price increases similar to Intel’s. AI demand is driving sales across the semiconductor industry.

AMD’s MI355 and MI455 graphics processing units should generate $14-15 billion in AI revenue. Vinh projects 200,000 MI355 GPUs shipping in the first half of 2026. The MI455 ramps up in the second half with 290,000-300,000 units targeted for the Helios solution.

Institutional ownership data reveals 3,082 funds holding Intel positions. This represents a 6.13% increase from the prior quarter. Vanguard Total Stock Market Index Fund owns 126.3 million shares, or 2.53% of the company.

Intel’s projected annual revenue stands at $100.9 billion. Non-GAAP earnings per share is forecast at $3.56. The average analyst price target of $37.52 now trails the current stock price, suggesting potential for upward revisions.

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