Intel’s Explosive Rally: Wall Street Chases CPU Surge as Analysts Pile In

Intel shares have rocketed more than 120% year-to-date through late April 2026, turning a battered chip giant into one of the market’s hottest names. The surge kicked into overdrive after first-quarter earnings on April 23 crushed expectations. Revenue hit $13.58 billion, topping forecasts of $12.32 billion by a wide margin. Earnings per share came in at $0.29, smashing the $0.01 consensus. Data center and AI products drove the beat, with server CPU demand exploding amid hyperscaler buildouts.

Q2 guidance points to $14.3 billion in sales. That’s no small feat for a company that spent years bleeding market share to rivals like AMD and Nvidia. Foundry losses narrowed too, hinting at progress in Intel’s ambitious push to manufacture advanced chips in-house. Tesla and SpaceX testing Intel’s 14A node added fuel to the fire. MarketBeat noted the stock’s intraday high of $87.10, with volume spiking 58% above average.

Analysts rushed to catch up. UBS hiked its price target to $83 from $65, sticking with Neutral. Timothy Arcuri admitted underestimating server CPU momentum. “Everything looks to be going great,” he wrote, but cautioned on sustainability. Barron’s highlighted the rally’s rage-on phase.

Barclays followed suit. Tom O’Malley lifted his target to $65 from $45, keeping Equal Weight. Production ramped across segments. Fundamentals turning. TipRanks captured the note.

Analyst Frenzy Signals Broader Shift

And the upgrades didn’t stop. HSBC flipped to Buy, target soaring to $95 from $50. Frank Lee cited agentic AI fueling server CPU shortages into 2027. Morgan Stanley went Overweight, $73 from $56. Joseph Moore spotlighted client recovery. Even Bank of America nudged to $56 from $48, though Vivek Arya held Underperform. TheStreet tallied the moves post-earnings.

Consensus reflects the scramble. Thirty-five analysts peg 2026 revenue at $58.42 billion, EPS at $1.08. Next year? $63.98 billion, $1.47 per share. Growth estimates scream: 156% this year, 37% in 2027. Yahoo Finance. Average targets cluster around $74 to $80—below recent peaks near $85. Highs hit $112. Lows $45.

But skeptics linger. Foundry capex burns cash. Margins lag Nvidia’s GPU gravy train. AMD nips at heels in servers. Still, Intel’s Xeon 6 sells out through 2026. Nvidia’s stake underscores supply chain bets. 18A node volumes loom by year-end, promising density edges over TSMC.

Hyperscalers hoard CPUs for AI infrastructure. Not just GPUs. Intel captures that tide. Shares trade rich versus history. Forward P/E? Around 78 on 2026 estimates. Yet momentum builds. Pullbacks to $70 could draw buyers.

Intel’s bet on foundry independence pays early dividends. Government chips act aid flows. Execution holds the key. Miss on 18A? Rally fizzles. Nail it? $100+ in sight. Wall Street awakens late. Investors weigh the upside.