Bank of America analyst Vivek Arya upgraded Intel from Underperform to Buy on June 11, raising his 12-month price target from $96 to $135. The move comes after Intel’s stock quintupled from roughly $20 in May 2025 to nearly $100 by early May 2026.

Intel shares have surged more than 200% year-to-date in 2026, and BofA maintained an Underperform rating through early 2026, citing valuation and execution risks.

What changed BofA’s mind

Arya’s bullish pivot centers on Intel’s server CPU business. BofA now projects server CPU revenue will exceed $40 billion by 2030, a figure that reflects surging demand for AI infrastructure and enterprise computing.

The upgrade also highlights opportunities in Intel’s foundry division, specifically in advanced packaging and leading-edge wafer production.

Shares responded to the upgrade with an intraday pop of 5% to 10%.

The long road from $20 to $100

In May 2025, the stock was hovering around $20, battered by execution concerns, market share losses to AMD and Nvidia, and a balance sheet that had absorbed significant losses from its foundry buildout.

AI-related demand for server chips accelerated faster than most analysts anticipated, Intel’s newest processor generations started winning back enterprise customers, and the company’s balance sheet stabilized. From approximately $20 to nearly $100 in twelve months is the kind of move that turns skeptics into believers, which is essentially what happened at BofA.

What this means for investors

Arya’s $135 target implies roughly 35% additional upside from recent levels near $100, which requires Intel to actually deliver on its ambitious roadmap.

If server CPU revenue genuinely hits $40 billion by 2030, Intel is trading at a reasonable multiple relative to its growth trajectory. The foundry business could become a legitimate profit center if Intel captures even a modest share of the advanced packaging market currently dominated by TSMC.