NEW YORK, January 13, 2026, 11:14 EST
Intel (INTC.O) shares surged roughly 6% Tuesday following KeyBanc Capital Markets’ upgrade to “overweight,” signaling expectations for the stock to outperform. The firm also raised its price target to $60. Intel’s stock climbed 6.4% to $46.88 in late morning deals. 1
The call comes as Intel is already on a hot streak, soaring 27% this year after an 84% jump in 2025, with investors hunting for the next AI-driven winners. KeyBanc’s John Vinh described Intel’s AI efforts as still “nascent,” but noted the company is gaining traction thanks to growing data-center investments. 2
Not everyone is sold on the rally. Susquehanna’s Christopher Rolland bumped his price target to $40 from $35 on Monday but flagged ongoing challenges in PCs and data centers. He said Intel’s discounted valuation makes sense given those obstacles. “We view this multiple as appropriate given PC and DC headwinds,” Rolland noted. 3
Advanced Micro Devices (AMD.O) climbed 5.7%, outpacing its peers. Nvidia (NVDA.O), a key AI player, edged down roughly 0.2%, while Taiwan Semiconductor Manufacturing (TSM.N) eked out a 0.7% gain.
KeyBanc’s note, based on channel checks and cloud data, backs up Intel’s claims of strong server demand. Vinh reported that compute processor “instances” — virtual servers leased in the cloud — fell 2% month-on-month in December but rose 11% year-on-year. Intel’s latest Granite Rapids generation jumped 12% month-on-month, fueled by Amazon Web Services deployments. 4
The bullish case also hinges on manufacturing, with Intel pitching itself as a contract chipmaker, or foundry, for external clients. Vinh pointed to yields above 60% on Intel’s “18A” process — meaning the share of usable chips from a silicon wafer — noting that this performance would place Intel behind TSMC but ahead of Samsung in cutting-edge production, according to Investor’s Business Daily. 5
Intel has been pushing that message aggressively since revealing its “Panther Lake” laptop chips and the Core Ultra Series 3 line at CES earlier this month. These are the first high-volume products built on the new 18A process. At the event, Intel claimed these chips would boost performance by 60% compared to the previous Lunar Lake Series 2, as it aims to regain market share from AMD in the PC arena. 6
Intel’s PC chief Jim Johnson told CES that the company is “laser-focused on improving power efficiency” while boosting CPU and graphics performance, plus adding more on-chip AI compute. The Series 3 lineup will appear in over 200 PC designs, with systems hitting the market later this month. 7
Intel’s challenge lies in execution, not storylines. The company must demonstrate that stronger demand is sustainable, that its planned price hikes actually take hold, and that its manufacturing scale-up avoids the yield and capacity setbacks that have plagued it in the past — particularly if external buyers remain reluctant to commit significant volume.
Intel is set to release its fourth-quarter and full-year 2025 earnings on January 22, right after markets close. The company will then hold an investor call at 2 p.m. PT. 8
