Bank of America double-upgrades Intel on expectations of AI-driven demand shift toward central processors, signaling a potential turnaround.
Bank of America upgraded Intel (NASDAQ: INTC) to buy from underperform, raising its price target to $135 from $96. The rare double-upgrade reflects a growing belief that AI spending may shift toward central processing units (CPUs), Intel’s historical strength, rather than graphics processing units (GPUs).
Intel shares have already surged more than threefold in 2026, closing near $125 after the upgrade. The move suggests confidence in Intel’s turnaround, particularly as AI systems evolve to rely more on CPUs for coordinating software agents.
The upgrade highlights a potential inflection point in the AI trade, where CPUs could play a larger role in server processing markets, expanding Intel’s addressable market beyond its recent struggles.