Intel Stock Jumps After Brutal Sell-Off as Wall Street Sees $125 Upside

This article first appeared on GuruFocus.

Intel (NASDAQ:INTC) shares climbed nearly 3% in morning trading Tuesday as renewed analyst support and growing interest in its AI server business helped the chipmaker recover from a sharp sell-off.

The rebound followed two difficult sessions in which Intel lost a combined 37.4% after issuing disappointing fourth-quarter guidance. Its relative strength index, a technical indicator measuring recent buying and selling pressure, dropped to 23, suggesting the stock had entered oversold territory.

Wall Street’s outlook also provided support. New Street Research assigned Intel a Buy rating with a $125 price target, pointing to rising demand for server processors as businesses expand their use of agentic AI. KGI and Evercore also maintained or upgraded their positive ratings.

Intel’s commercial prospects received another boost from a multiyear agreement with Oracle Cloud Infrastructure covering existing and future Xeon processors, including its upcoming Diamond Rapids platform. The company is also pursuing a deal to acquire quantum software developer Classiq. Its Data Center and AI business recorded 78% growth.

A broader recovery in semiconductor shares added to the gains, with AMD and Nvidia also advancing during the session.