Intel Upgrade Fuels Rally on Server CPU Demand
New Street's Oct. 26 Intel upgrade cites agentic AI and tight supply behind a server CPU shortage, focusing investors ahead of Intel's Q3 results.
KEY TAKEAWAYS
- New Street upgraded Intel to Buy on Oct. 26 with a $125 price target.
- Ferragu said agentic AI was driving sustained server CPU demand amid persistent supply constraints.
- Event materials cited Oct. 29 for Intel's third-quarter results.
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Intel Corp. (INTC) attracted investor attention after New Street Research upgraded the stock to Buy on October 26, 2026. The analyst cited agentic artificial intelligence (AI) as driving sustained demand for server CPUs, alongside supply constraints that could persist for years. Traders noted this development ahead of Intel’s third-quarter results scheduled for the week of October 26.
New Street Upgrade Rationale and Capacity Outlook
Pierre Ferragu of New Street Research authored the note, setting a $125 price target. He attributed the upgrade to a sustained increase in server-CPU demand fueled by agentic AI and ongoing supply shortages. The note framed this as an analyst view rather than company guidance.
New Street estimated Intel’s server capacity could grow by more than 50% in 2027, driven by expansion of the Intel 3 manufacturing node, ramp-up of the 18A process, and reallocating production capacity from PCs to servers. The analyst projected server-CPU revenue could reach $50 billion by 2030, based on a forecast 2030 earnings per share of $7.10 and a 25-times multiple supporting the price target. Ferragu also noted that stronger internal demand could improve foundry utilization and support a broader turnaround.
Earnings Timing and PC Market Outlook
Event materials cited October 29, 2026, as the date for Intel’s third-quarter earnings release. The supplied event summary described a weak outlook for the PC segment.
