Citi and Evercore Pile Into Intel With Huge Price Target Hikes: Is the CPU Renaissance Real?

Wall Street’s view on Intel (NASDAQ:INTC | INTC Price Prediction) stock leaned bullish this morning. Citi upgraded Intel to Buy from Neutral with a $95 price target, up from $48, while Evercore ISI’s Mark Lipacis moved to Outperform from In Line with a $111 target, up from $45.

The calls came after Intel’s blockbuster Q1 FY2026 print. Non-GAAP EPS hit $0.29 versus a $0.01 consensus, while revenue reached $13.577 billion, roughly a 9% beat. INTC shares traded up 28% in the premarket to $85.26.

For long-term investors, the key question is whether agentic AI truly rehabilitates the Intel stock story, or if foundry losses and margin pressure cap the rally. The divergence across firms is the real tell.

The Analyst’s Case

Lipacis frames Intel as a “CPU renaissance play,” arguing the fastest growing AI workloads need more CPUs and could flip the CPU:GPU ratio from 1:8 to 8:1. He credits CEO Lip-Bu Tan with fixing the balance sheet and positioning Intel “back on the competitive track.”

Citi’s thesis leans on improving CPU demand from agentic AI. Even after the surge, Citi still sees 20% upside. Lipacis flagged Intel’s “unique position” as the only U.S.-based leading-edge chip maker.

Company Snapshot

Intel’s Q1 revenue mix validated the AI angle. Data Center and AI revenue rose 22% year over year to $5.05 billion, while Intel Foundry grew 16% to $5.42 billion.

Strategic wins piled up. Intel Xeon 6 was selected as the host CPU for NVIDIA’s DGX Rubin NVL8 systems, and Intel inked a multiyear partnership with Alphabet‘s (NASDAQ:GOOGL) Google to co-develop custom ASIC IPUs. Tan said agentic AI is “significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings.”

Why the Move Matters Now

The bear camp didn’t capitulate. BofA kept an Underperform rating while nudging its target to $56, citing subpar 40% gross margin and cash burn from 18A investments. JPMorgan stayed Underweight at $45, flagging earnings quality issues and foundry breakeven pushing beyond 2027.

Valuation is stretched on traditional metrics. Intel trades at a forward P/E ratio of 125x, and the consensus analyst target sits at $55.33. Jefferies raised its target to $80 and Stifel to $75, but both kept Hold, waiting for more proof.

What It Means for Your Portfolio

For investors, the Intel stock story hinges on execution. Agentic AI tailwinds and the Google win are real, and a sixth consecutive quarter of revenue above expectations shows operational momentum.

The bear case on Intel is also fact-based. Foundry losses, a $4.07 billion restructuring charge, and free cash flow of negative $3.87 billion mean Intel’s turnaround is far from complete. For additional context on the broader semiconductor rotation, see our recent AI chip coverage.

Moderate position sizing may be prudent. Watch for whether Intel’s Q2 guidance of $13.8 billion to $14.8 billion holds and whether foundry margins inflect before adding fresh capital to INTC stock.