Intel Shares Rise 3.5% on Oct. 27; New Street Lists Buy Rating and $125 Target

Intel shares rose 3.52% to close at $93.65 on Oct. 27, a day after New Street Research issued a report upgrading the chipmaker to Buy and setting a $125 price target.

The stock gained 4.04% on Oct. 26, closing at $90.47. New Street’s report was dated Oct. 26. Its title framed CPU scarcity as strengthening Intel’s turnaround.

Revenue in Intel’s Data Center and AI segment totaled $6.262 billion for the quarter ended June 27, a 59% increase from a year earlier. The second-quarter AI-segment growth came alongside a 9% year-over-year rise in server unit volume and a 48% increase in server average selling prices.

Demand for Intel’s server products exceeded available supply because of internal supply constraints. Intel expects industrywide supply constraints to continue into next year.

“AI is driving unprecedented demand for compute,” Intel CEO Lip-Bu Tan said in the company’s July 23 second-quarter results announcement. The quarter’s results provide earlier operating context for the shares’ Oct. 26 and Oct. 27 moves.

JPMorgan moved Intel to Neutral from Underweight on Oct. 19, a week before New Street’s report. The JPMorgan rating change was a separate analyst action.

Intel is scheduled to release third-quarter results after the market closes Oct. 29. Its conference call is set for 5 p.m. ET (21:00 UTC).