Intel soars on double upgrade from BofA. Here's what Jim Cramer says investors must do - CNBC
📈 Intel shares jumped nearly 8% after Bank of America upgraded the stock to Buy with a $135 price target.
🤖 Jim Cramer named Intel his No. 1 chip pick, surpassing Nvidia as a preferred holding for investors.
💰 BofA forecasts Intel server CPU sales to hit $40 billion by 2030 versus a consensus of $32.5 billion.
🏭 Intel Foundry is positioned to relieve supply constraints as TSMC operates at full capacity.
🤝 CEO Lip-Bu Tan secured preliminary agreements with Apple and joined Elon Musk's Terafab project.
⚙️ The upgrade highlights a strategic shift from AI training GPUs to CPUs for daily inference tasks.
📉 BofA previously held a Sell-equivalent rating before initiating a position at $140 last week.
Bullish Signals
- Intel stock gained nearly 8% immediately following a double upgrade from Bank of America, signaling strong institutional confidence.
- Jim Cramer explicitly stated that Intel is now his favorite name in the chip space, ranking it above Nvidia.
- Bank of America raised its price target to $135 and projects server CPU sales of $40 billion by 2030, well above market consensus.
- Intel Foundry is gaining momentum as a viable alternative to TSMC for external customers like Apple and Terafab.
- CEO Lip-Bu Tan has successfully improved manufacturing quality and secured key partnerships since taking over in March 2025.
- The company is well-positioned to benefit from the growing demand for CPUs in agentic AI systems and inference stages.
Risk Factors
- Bank of America analyst Vivek Arya noted that the biggest risk is whether Intel can consistently deliver at a level comparable to TSMC.
Full Analysis
Intel stock surged nearly 8% on Thursday following a double upgrade from Bank of America, which elevated its rating to Buy and raised the price target to $135. Jim Cramer endorsed the move during CNBC's Morning Meeting, declaring Intel his favorite chip name and urging investors to buy shares ahead of Nvidia due to capital raising needs surrounding the SpaceX IPO.
Bank of America analysts project Intel's server CPU sales will reach $40 billion by 2030, significantly higher than the consensus estimate. The upgrade is driven by Intel's dual opportunity in central processing units (CPUs) for AI inference and its contract chip manufacturing business, known as Intel Foundry, which aims to alleviate supply chain bottlenecks caused by TSMC's full capacity.
CEO Lip-Bu Tan has revitalized the struggling foundry business since taking office in March 2025, securing preliminary agreements with Apple and joining Elon Musk's Terafab initiative. While risks remain regarding consistent delivery comparable to TSMC, analysts see Intel as a crucial player in the agentic server CPU market and a viable alternative for manufacturing.
