NEW YORK, April 6, 2026, 07:08 EDT
Intel Corp shares popped 4.9% to $50.38 early Monday after analysts at KeyBanc Capital Markets bumped up their price target to $70 from $65, calling out the chipmaker on the back of an Asia supply-chain tour.
This shift is key as investors assess whether Intel can actually translate rising demand for server CPUs—the workhorse chips powering data centers—into improved margins. Back in January, Intel admitted it was surprised by the AI-driven surge in orders for these chips and wasn’t able to keep up. The company is set to report Q1 results on April 23.
KeyBanc’s John Vinh and his team sounded notably upbeat on Intel, pointing to tightening supply as pushing “broadbased price increases across semiconductors.” The firm bumped up earnings forecasts for a number of chip stocks as well. Investing.com
This is another boost for the turnaround narrative tied to Chief Executive Lip-Bu Tan. Just last week, Intel said it would buy back Apollo Global Management’s 49% share in the Fab 34 joint venture in Ireland for $14.2 billion, citing both improved business momentum and a healthier balance sheet.
“Today, we have a stronger balance sheet, improved financial discipline,” said finance chief David Zinsner as Intel announced the buyback. The company expects to use existing cash plus roughly $6.5 billion in new debt to pay for it, projecting the move will boost earnings per share and shore up its credit profile starting in 2027. Newsroom
Nvidia’s graphics processors have had some company lately: Intel’s conventional server CPUs are now key fixtures in AI data centers. Back in January, Reuters noted that cloud firms rushed to upgrade aging chip stocks—Intel was, as chief investment officer Michael Schulman put it, “supply-constrained rather than demand-constrained.” Reuters
That burst of optimism comes as Intel works through a manufacturing overhaul. Back in March, Reuters reported that Tan was weighing whether to open up 18A—Intel’s next-gen chip process—for external clients, after previously reserving it mostly for Intel products.
This isn’t just about Intel’s lineup. The chipmaker is out to grab more contract manufacturing deals and fend off Advanced Micro Devices in both PCs and servers. Back in January, Reuters noted Intel was ceding PC market share to AMD, and a lot of older-generation PC chips were mostly produced by Taiwan Semiconductor Manufacturing Co.
Even so, there’s a hitch to that upbeat call. Reuters noted only a fraction of 18A chips have met customer standards, with low yields—meaning not enough usable chips per wafer—pressuring margins at a tricky time. Intel’s also loading up on new debt for the Ireland buyback.
UBS analysts warned in January that steeper memory prices might dampen PC demand this year—a sign Intel’s recovery isn’t tied to just AI servers. The chipmaker still depends on multiple end markets.
Intel delivers first-quarter earnings after the bell April 23. The focus: whether constrained server chip supply, better pricing, and the company’s 18A manufacturing push are finally making a dent in margins—beyond what’s already surfacing in sell-side notes and announced deals.
