Intel's stock could push even higher thanks to this subtle dynamic, BofA says

Dow Jones06-12

MW Intel's stock could push even higher thanks to this subtle dynamic, BofA says

By Hannah Pedone

Despite major stock gains this year, Intel is significantly 'underowned' in funds, BofA notes - and as ownership expands, the stock could zoom higher

BofA Securities analyst Vivek Arya double-upgraded Intel's stock to buy from underperform on Thursday.

BofA analyst Vivek Arya missed out on the massive rally in Intel shares, which has seen them more than triple so far this year. But as he turns bullish on the stock now, he sees further room for big gains.

One notable callout from Arya's double-upgrade of Intel $(INTC)$ on Thursday is that despite the stock's strong performance this year - which is enough to rank third in the PHLX Semiconductor Index SOX - it is still "underowned" compared to peers with similar market capitalizations. Intel's market cap has surpassed $550 billion.

"We flag potential for ownership broadening to lead to stock gains," he wrote, noting that Advanced Micro Devices' stock $(AMD)$ recently benefited from a similar trend.

Arya said Intel is the second-least-owned among the 15 largest chip and AI-infrastructure companies based on a list compiled by BofA Global Research and Bloomberg. The concept of "underownership" generally refers to the idea that funds aren't as invested in a particular stock on a relative basis.

Intel's stock was up 7% on Thursday after Arya lifted his rating to buy from underperform, saying that he has confidence in the company's opportunity to address industry constraints in wafer production and supply - particularly in the market for central processing units that are used for agentic artificial intelligence. He raised his price target to $135 from $96, with the new target 21% above recent levels.

Read more: Micron, Marvell drag the tech sector into a new bearish phase. Will the correction last this time?

Intel's stock has been generating investor enthusiasm after a string of partnerships and AI announcements. For instance, the company recently reached an agreement with Apple $(AAPL)$ to manufacture chips for the iPhone maker.

And this week, The Information reported that Google $(GOOGL)$ $(GOOG)$ and Nvidia (NVDA) are considering Intel as a backup chip provider.

Arya also pointed out that Intel's participation in the Terafab project - whereby the company will provide design and packaging for a multitrillion-dollar chip-manufacturing project led by Tesla $(TSLA)$ and SpaceX $(SPCX)$ - could be another factor that supports stock appreciation.

See also: Micron and other memory makers are driving a 'supercycle' for this corner of the chip sector

-Hannah Pedone

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June 11, 2026 13:34 ET (17:34 GMT)

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Intel's stock could push even higher thanks to this subtle dynamic, BofA says

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