Intel Stock Is Rising Again. Why the Rally Can Quickly Reignite

Dow Jones04-21 21:07

Though Intel's recent rally ground to a halt Monday, possibly as investors repositioned themselves ahead of Thursday's earnings report, KeyBanc thinks the chip maker's stock has further to run.

"The real cyclical recovery has yet to begin," KeyBanc analysts, led by John Vinh, wrote in a note Monday. They added that they favor Intel, along with Micron and Nvidia.

They rate Intel stock as Overweight, with a target price of $70. The shares were up 2.1% at $67.06 in premarket trading. Before Monday's 4.1% fall, Intel stock had risen 11 of the previous 12 trading sessions, dating back to March 31.

"Given the... added durability of AI infra build-out as a sustained demand driver, we believe this recovery can extend at least through 2027," Vinh added.

Intel has been on a tear so far this year--shares are up 78% since the start of January -- in large part due to elevated demand for central processing units from AI hyperscalers.

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