JPMorgan Chase has issued a strong buy rating on Intel Corporation (INTC), citing undervaluation and accelerating momentum in data center and AI chip demand. The recommendation comes as the company positions itself as a key player in the next wave of semiconductor innovation, despite broader market focus on Nvidia and AMD.
- JPMorgan upgraded Intel (INTC) to strong buy with a $58 price target
- INTC shares up 5.7% on the upgrade announcement in December 2025
- Intel’s data center revenue grew 12% YoY in Q3 2025
- 18A process technology now in pilot production
- Forward P/E of 12.6x, below semiconductor sector average
- 28% increase in semi-capex spending over 18 months
JPMorgan Chase has upgraded Intel Corporation (INTC) to a strong buy, marking a notable shift in sentiment toward a stock long overshadowed by AI-focused peers. The firm’s research team highlighted Intel’s strategic investments in advanced packaging and its expanding role in co-packaged optics and AI inference chips, which are gaining traction with enterprise clients. With a price target set at $58 per share, the upgrade reflects a 42% upside from current levels as of December 2025. The recommendation is underpinned by Intel’s recent progress in its 18A process technology, now entering pilot production, and its growing presence in AI workloads beyond traditional CPU markets. JPMorgan noted that Intel’s data center revenue grew 12% year-over-year in Q3 2025, driven by increased demand for its Xeon processors and Gaudi AI accelerators. The firm also pointed to a 28% rise in semi-capex spending over the past 18 months, signaling a major internal push to regain competitiveness. Market reaction has already begun, with INTC shares rising 5.7% in early trading following the report. Analysts suggest that the upgrade could attract both institutional inflows and retail interest, particularly as investors seek diversification beyond Nvidia (NVDA) and AMD, whose valuations have stretched in recent quarters. The move also underscores growing confidence in Intel’s ability to capture a larger share of the AI infrastructure supply chain. While NVDA and AMD continue to lead in high-performance AI training chips, Intel’s focus on cost-effective inference solutions and its partnerships with major cloud providers present a compelling value opportunity. The firm’s balance sheet remains strong, with $18 billion in cash and short-term investments and a forward P/E of 12.6x, well below the semiconductor sector average.