Intel is experiencing a positive shift in market sentiment as Bank of America has upgraded its stock rating to buy from underperform, reflecting a growing demand for central processing units (CPUs) amid the rise of agentic artificial intelligence.
Analyst Vivek Arya noted that this new form of AI requires more complex processing capabilities that CPUs can provide, as opposed to the previously favored XPUs. He forecasts that CPU sales could reach $40 billion by 2030, with Intel's revenue from CPUs already at $5.1 billion in the first quarter of 2026.
Following a 60% surge in Intel's shares since its earnings report on April 23, the stock remains less owned compared to other major chip companies, suggesting potential for further gains as investor interest broadens. Following the upgrade, Intel shares rose 4.5% in premarket trading