"While the surge first gained traction after the U.S. government took a 9.9% stake in the chipmaker through an $8.9 billion equity investment last August, its advance lately has been driven more by Intel's own operational progress. Its foundry business suddenly seems to be on solid footing and it is experiencing robust demand for server processors fueled by the ongoing expansion of AI infrastructure."
"KeyBanc analyst John Vinh upgraded Intel based on strong artificial intelligence (AI)-related demand from hyperscalers for server CPUs. Supply-chain insights suggest Intel is largely sold out of server CPU capacity for 2026, as major cloud providers ramp up data center expansions to support growing AI workloads. This constraint could enable Intel to raise average selling prices (ASPs) by 10% to 15% across its server CPU portfolio, helping capture more value from the sustained demand."
Intel stock has surged in 2026 after an 84% gain last year, with a 28% year-to-date rise. An initial boost followed a U.S. government 9.9% stake via an $8.9 billion equity investment, while recent gains reflect operational progress. Foundry operations show clear momentum and server-processor demand is robust due to expanding AI infrastructure. KeyBanc upgraded the stock, citing hyperscaler-driven AI demand and supply-chain signals that Intel is largely sold out of 2026 server CPU capacity. That tightness could lift ASPs by 10%–15%. Manufacturing advances, including 18A yields over 60%, support a push to become the second-largest foundry. Industry reports point to early involvement from Apple for low-end M-series processors.
Read at 24/7 Wall St.
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