Intel Surges 6% on Bank of America Double Upgrade, June 14

Bank of America analyst Vivek Arya double-upgraded Intel to buy on June 11, jumping two rating notches from underperform. The $135 price target sits 8% above the current $124.57 level. INTC shares rose 6% in the session after the upgrade. This rare move signals a major shift in how Wall Street sees artificial intelligence spending.

Why Bank of America Changed Its Mind

Vivek Arya’s double upgrade reflects a change in AI strategy across the industry. For years, the AI boom focused on graphics processing units (GPUs) that train large models. Now, as companies build autonomous systems where software agents work independently, central processors handle coordination tasks. This work shift moves billions of dollars toward Intel’s core business. Bank of America raised its server processor market forecast to $170 billion by 2030, up from $125 billion, and sees Intel capturing roughly a quarter of it.

Intel’s Data Center Revenue Accelerates

Intel’s data center and AI revenue rose 22% year over year to $5.1 billion in the first quarter of 2026. This is the company’s fastest-growing segment by far. The growth shows real customer demand for Intel’s chips in AI infrastructure. With Meyka rating the stock a B and analysts targeting $135, the data points to upside potential from current levels.

The Stock’s Remarkable Turnaround

Intel has more than tripled in 2026, recovering from a low of $18.97 in the past year to $124.57 today. The stock trades at a 5-year high of $132.75. Analyst consensus is mixed: 22 analysts recommend buy, 32 say hold, and 3 say sell. Meyka’s technical indicators show RSI at 62.68 and a strong trend with ADX at 34.46, suggesting momentum remains intact despite some overbought signals in the CCI at 106.96.

What This Means for Investors

Bank of America’s upgrade reflects confidence in Intel’s foundry strategy and AI processor roadmap. However, Meyka’s company rating remains C-, citing weak profitability metrics and negative free cash flow. The stock trades at 5.7 times book value, well above historical norms. Investors should weigh the upside from AI growth against execution risks in Intel’s manufacturing rebuild.

Final Thoughts

Bank of America’s rare double upgrade signals Wall Street’s growing belief in Intel’s AI pivot. With the stock up 6% and a $135 target implying 8% upside, near-term momentum favors bulls. However, Meyka’s C- rating warns that profitability remains a concern.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.