Intel (INTC) shares rallied about 4.5% in midday trading on Monday, Oct. 19, after JPMorgan upgraded the chipmaker.
The rebound came after a difficult week for tech investors. Intel stock tumbled more than 14% last week amid a broad tech sell-off, partly driven by CoreWeave’s (CRWV) debt-heavy balance sheet, which raised concerns about financing for AI infrastructure and pressured the semiconductor sector.
JPMorgan just upgraded Intel to neutral from underweight while maintaining its $85 price target.
The firm said in a research note that the stock’s recent pullback has created a more balanced risk/reward outlook. Intel shares have fallen about 36% from their June peak.
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JPMorgan pointed to progress under Intel CEO Lip-Bu Tan, particularly in Intel’s data center business and next-generation chip manufacturing.
“Since Lip Bu Tan’s appointment to CEO, we believe the team’s execution and competitiveness in their core client/datacenter compute market has improved,” analyst Harlan Sur wrote. “The team’s execution on next-gen manufacturing has significantly improved.”
The analyst also sees room for earnings estimates to rise as demand for AI computing continues to grow.
“Despite near-term concerns on AI infrastructure spending sustainability, we believe increasing Agentic AI workloads (CPU intensive) and a very tight supply chain for leading edge silicon should drive continued positive EPS revisions in the upcoming earnings season and through CY27,” Sur wrote.
Intel earnings are coming on Oct. 29
Intel is scheduled to report its third-quarter 2026 financial results on Oct. 29.
For the quarter, Intel expects adjusted earnings of 38 cents per share on revenue between $15.8 billion and $16.8 billion. Analysts have expectations of 27 cents per share and $15.1 billion in revenue, according to CNBC.
Three months ago, Intel reported better-than-expected second-quarter results, posting its fastest quarterly revenue growth since 2011.
The chipmaker reported adjusted earnings of 42 cents per share, more than double analysts’ expectations of 21 cents. Revenue rose 25% year over year to $16.1 billion, beating estimates of $14.42 billion.
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Intel shares have surged about 155% so far in 2026, benefiting from renewed investor confidence in its turnaround and growing demand for processors used in AI data centers.
While Nvidia (NVDA) dominates the market for AI accelerators, Intel is benefiting from demand for traditional server CPUs, which are essential for running data centers and handling increasingly complex AI workloads.
“AI is driving unprecedented demand for compute,” Intel CEO Lip-Bu Tan said in the statement. “As we continue to execute, Intel is well-positioned to capture sustainable growth across our CPU franchise.”
Still, Intel’s rally has raised expectations for its upcoming earnings report. Investors will be watching whether the company can sustain its revenue growth and whether there’s stronger demand for its chips.
According to TipRanks, Wall Street analysts have an average price target of $114.04 for Intel, with a high forecast of $155 and a low of $80.
Intel shares traded around $94 as of writing.
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