Intel shares climbed about 4% to $91 in morning trading on October 26, 2026, after New Street Research upgraded the chipmaker to Buy from Neutral and set a $125 price target. The research firm’s case centers on demand for server processors as businesses deploy artificial intelligence systems capable of performing tasks with limited human intervention.

Intel shares advance on server-demand outlook

New Street’s note, released before the market opened, forecast that supply constraints would persist for several years while Intel expands production capacity. The firm expects Intel’s server capacity could grow more than 50% in 2027.

Looking further ahead, New Street projects Intel could generate $50 billion in server CPU revenue by 2030, even as its market share could decline to 20% to 25%. That outlook pairs a larger revenue opportunity with a smaller share of the market, rather than assuming Intel must gain share to grow.

The capacity and revenue projections are New Street’s forecasts, not Intel’s guidance. The roughly 4% stock advance was a morning-trading snapshot, not a confirmed closing gain.

Quarterly earnings will test the profitability outlook

Intel’s second-quarter 2026 financial results showed Data Center and AI revenue of $6.3 billion, up 59% from a year earlier. The segment’s operating margin rose to 39.5% from 16.1%, providing a stronger recent earnings backdrop for New Street’s upgrade.

In that July 23 release, Intel forecast third-quarter revenue of $15.8 billion to $16.8 billion. Intel is scheduled to report third-quarter results on October 29, when investors can assess whether data center profitability has held up alongside the increase in demand.

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