Intel Stock Is Soaring. Why Wall Street Is Turning Bullish Again

This article first appeared on GuruFocus.

Intel Corporation (NASDAQ:INTC) shares surged about 10% on Wednesday after Freedom Broker upgraded the chipmaker to Buy from Hold and raised its price target, citing improving fundamentals tied to artificial intelligence demand.

Intel reported first-quarter revenue of $13.58 billion and adjusted earnings of 29 cents per share, both ahead of Wall Street expectations. Intel said its data center and AI segment grew 22% to $5.1 billion, reflecting stronger demand for server processors.

The brokerage said Intel may be benefiting from a shift in how AI systems are built, with CPUs increasingly used to coordinate workloads. It also pointed to partnerships with companies such as Google and involvement in Elon Musk’s Terafab project as signs of growing industry relevance.

Intel expects second-quarter revenue of $13.8 billion to $14.8 billion and adjusted earnings of 20 cents per share. Analysts said the outlook, along with progress in its 18A manufacturing process, could support continued investor focus on Intel’s turnaround.