Intel’s Foundry Breakthrough Sparks Wall Street Optimism & Analyst Upgrades
Intel just gave Wall Street something to cheer about—and analysts are rushing to upgrade their outlooks.
The Foundry Game-Changer
Intel's foundry progress isn't just a step forward—it's a leap. The chip giant's manufacturing roadmap is hitting key milestones, convincing skeptics that its turnaround has real teeth. That's the kind of execution that gets upgrades flying off the printer.
Why Analysts Are Biting
It's simple: momentum. When a legacy titan shows it can innovate at pace, the street takes notice. Upgrades follow momentum, and right now, Intel's building plenty of it. This isn't about promises anymore—it's about delivered progress.
The Bigger Picture
Intel's moves ripple far beyond its own stock price. A stronger foundry business reshapes the entire semiconductor supply chain—and Wall Street loves a reshuffle. It creates new winners, new narratives, and fresh fees for the investment banks, of course. Because nothing fuels optimism like a new revenue stream for the suits.
So, is the optimism warranted? The upgrades say yes. But in the finance world, today's breakthrough is just tomorrow's baseline. Intel's running hard—and Wall Street's watching the clock.
Wall Street upgrades pile up as earnings draw closer
Several forces are driving the shift. The financial outlook looks less bleak. Analyst sentiment has improved. Talk of fresh foundry customers keeps growing.
There is also rising interest tied to Donald Trump, now the 47th president, and his “America First” push. Intel reports fourth‑quarter results after the bell on January 22, and traders want proof that progress is real.
Citi and KeyBanc have both lifted their views. The stock now has the highest number of buy‑equivalent ratings in more than a year.
Earlier this week, John Vinh at KeyBanc moved the shares to overweight. He pointed to solid demand, steps forward in the foundry unit, and a possible deal with Apple covering chips for Macs and iPhones.
Vinh said the 18A process could make the company a credible number two foundry, ahead of Samsung. He set a $60 price target, the highest on the Street, which implies 24% upside from the $48.32 close on Thursday.
Not everyone agrees. The average target sits at $40.66, which points to a 16% drop over the next year. Some analysts think Wall Street is late adjusting. Citi raised its rating to neutral from sell and lifted its target to $50 from $29. Analyst Atif Malik wrote:-
“We believe Intel should benefit from tight advanced packaging capacity at TSMC and has a window to attract wafer customers with U.S. government support.”
Foundry hopes and political ties aid price outlook for Intel stock
Beyond foundry talk, Intel is seeing demand for CPU chips used in PCs and data centers. These systems still need CPUs alongside GPU chips sold by Nvidia and others.
Trump of course last year helped broker a U.S. government investment after publicly criticizing CEO Lip‑Bu Tan. Nvidia and SoftBank have also invested, strengthening the balance sheet.
Paul Meeks of Freedom Capital Markets said, “You have a company seen as being on the right side with power brokers in Washington and with marquee tech firms.”
The stock also gets support from geography, as Intel is one of the few major chipmakers producing on U.S. soil. Investors are watching rising tension around Taiwan, which could disrupt TSMC, the world’s most important foundry.
Still though, Intel currently trades at over four times estimated sales, the highest in more than twenty years.
Intel’s revenue is expected to surge by 3% in 2026 after a 1% drop in 2025, according to Bloomberg estimates.
If you're reading this, you’re already ahead. Stay there with our newsletter.
