New York, Jan 13, 2026, 08:47 EST — Premarket
- Intel dropped roughly 3.3% in premarket trading following a broker upgrade that highlighted tight supply of server chips in 2026
- KeyBanc raised its rating to Overweight and set a $60 target, driven by strong hyperscaler demand and better-than-expected 18A yields
- Investors are eyeing Intel’s Jan. 22 earnings for clues on pricing, margins, and how its foundry business is gaining traction
Intel shares dropped 3.3% to $44.06 in premarket on Tuesday, erasing part of their recent rally despite a KeyBanc upgrade and optimism around server demand.
This call is key as Intel’s 2026 strategy shifts from promises to tangible pricing power and delivery. The stock now acts as a gauge for the company’s ability to push more high-end processors into the AI boom, even as it invests heavily to overhaul its manufacturing.
The morning is packed with fresh U.S. inflation figures and the first major batch of quarterly earnings, setting the stage for risk sentiment. For Intel, this environment is a double-edged sword: improved pricing is a plus, but chip stocks usually take the brunt when rate concerns flare up.
KeyBanc Capital Markets has bumped Intel and AMD up to Overweight, setting a $60 price target on Intel. Analyst John Vinh highlighted “outsized hyperscaler demand” from major cloud players following a recent trip to Asia. He noted that this surge is straining supply chains and driving up prices for DRAM and NAND memory chips. Investing.com
Vinh noted that Intel is “largely sold out in server CPU in 2026” and is weighing “a 10–15% ASP increase.” ASP stands for average selling price, the usual price Intel earns per chip.
He added that Intel’s 18A manufacturing process has surpassed “over 60%” yield, indicating a strong proportion of usable chips per wafer, and deemed it sufficient to begin ramping up Panther Lake, the company’s upcoming laptop platform.
On the foundry front—building chips for external clients—Vinh noted KeyBanc’s checks indicate Intel has secured Apple for low-end M-series processors on 18A and is in discussions about iPhone processors further down the road. Intel hasn’t publicly confirmed these customer plans.
AMD, upgraded to Overweight by KeyBanc as well, climbed 2.2% in premarket action. That move highlighted how Tuesday’s weakness in Intel seemed isolated to the company, not a wider chip sector downturn.
U.S. consumer prices climbed 0.3% in December, with annual inflation steady at 2.7%, according to data that kept investors wary about the Federal Reserve’s timeline for maintaining tight policy—a persistent challenge for growth stocks amid rising yields.
That bullish chatter isn’t without its caveats. Several analysts remain wary, highlighting capacity bottlenecks expected in early 2026 and persistent challenges in PCs and data centers. This comes even as price targets creep higher and the stock trades below some rivals.
Intel is banking on its upcoming Panther Lake laptop chips, made with the 18A process, to claw back market share from AMD and bolster its manufacturing reputation.
Intel’s next major event is just around the corner. The company will release its fourth-quarter and full-year 2025 results on Jan. 22 after the market closes, with an earnings call set for 2 p.m. PT. Investors will be focused on the 2026 outlook, server pricing trends, and any news on outside foundry customers.
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