Intel’s Resurgence: Analysts Herald a Turning Point for the Chipmaker

A significant shift in sentiment is sweeping Wall Street ahead of Intel's quarterly earnings release. Once considered a laggard in the semiconductor industry, the company is now being celebrated by market experts as a resurgent competitor, particularly in the burgeoning market for artificial intelligence. This wave of analyst upgrades raises a pivotal question: has Intel's prolonged struggle finally ended, or will Thursday's report deliver a sobering reality check?

All attention is now fixed on Intel's financial results, scheduled for release after the market closes on Thursday, January 22. While consensus estimates project a revenue decline of just over 6% to $13.38 billion, the focus has decisively shifted to the company's forward guidance. The options market is pricing in substantial post-announcement volatility, anticipating a potential share price swing of nearly 9%.

For investors, the report will serve as the ultimate validation—or refutation—of the newly bullish thesis. The key lies not in revisiting the past quarter's performance but in confirming emerging trends. Market participants will scrutinize management commentary for two crucial signals: the naming of concrete external customers for Intel's advanced manufacturing processes and corroboration of reports indicating sold-out server CPU capacity. A lack of these confirmations could trigger a swift reversal of the recent rally.

Server Demand and Pricing Power Fuel Optimism

The catalyst for this renewed optimism is a series of positive research notes that propelled Intel's shares higher against the broader market trend on Tuesday. A particularly notable upgrade came from KeyBanc Capital Markets, which raised its rating on the stock to "Overweight." Their analysis suggests that Intel's server CPU segment is already "largely sold out" for 2026. This overwhelming demand could allow the chip giant to increase prices in this segment by 10% to 15%. KeyBanc subsequently lifted its price target to $60 per share, representing the most bullish forecast on Wall Street.

Should investors sell immediately? Or is it worth buying Intel?

The bullish case is echoed by global bank HSBC, which points to the next evolutionary phase of artificial intelligence, termed "Agentic AI." As AI systems operate with increasing autonomy, HSBC strategists argue that demand for traditional server central processing units (CPUs) will rise more sharply than previously forecast.

Manufacturing Advances Underpin the Rally

Confidence is building not only on the demand side but also regarding Intel's technological execution. In a recent analysis, Seaport Research Partners validated the company's manufacturing roadmap. Progress on new production nodes, specifically the Intel 18A process, and the upcoming "Panther Lake" processors indicate that the foundry division—long a drag on the balance sheet—is gradually transforming into a valuable asset.

This regained market trust is reflected in the equity's performance. Since the start of the year, Intel shares have advanced approximately 23%, trading within striking distance of their 52-week high.