Intel extends comeback as investors bet on foundry growth

Core Viewpoint - Intel Corp. is experiencing a significant rally in its stock price, driven by optimism regarding new foundry customers and a renewed focus on the artificial intelligence market [1]. Group 1: Stock Performance - The stock has increased by 31% at the start of 2026, marking the third-best performance in the S&P 500 Index [2]. - Following an 84% rally in 2025, shares are nearing their highest level in two years, recovering from a 60% drop in 2024 [2]. Group 2: Investor Sentiment - Investor sentiment has improved due to a better financial outlook, recent analyst upgrades, and speculation about new foundry customers [3]. - Analysts from firms like Citi and KeyBanc have raised their ratings on Intel, with the stock now having the most buy-equivalents in over a year [4]. Group 3: Analyst Insights - KeyBanc upgraded Intel shares to overweight, citing solid demand and progress in its foundry business, along with a potential agreement with Apple Inc. [5]. - The price target set by KeyBanc is $60, indicating a 24% upside from the closing price of $48.32 [5]. - Citi raised its rating to neutral from sell and increased its price target to $50 from $29, highlighting Intel's unique opportunity to attract foundry wafer customers [6]. Group 4: Market Dynamics - Intel is benefiting from demand for its CPU chips for PCs and data centers, which are essential alongside GPU chips from competitors like Nvidia [6].