Intel’s Stock Soars by 7% Due to Server CPU Sellout for 2026

KeyBanc Upgrade Underscores Robust AI-Driven Demand

On Tuesday, January 14, 2026, Intel shares experienced a surge of over 7% following an upgrade to “Overweight” by KeyBanc Capital Markets with a $60 price target. The rally was sparked by supply-chain insights that suggested Intel has largely sold out its server CPU capacity for 2026. This is due to major cloud providers ramping up data center expansions to accommodate the growing AI workloads.

KeyBanc analyst John Vinh pointed to “outsized hyperscaler demand” after a trip to Asia. He noted that Intel’s supply constraints could allow the company to increase average selling prices by 10% to 15% across its server CPU portfolio. This pricing power signifies a significant shift for Intel, a company that has been grappling with maintaining margins in recent years due to competition from AMD and Nvidia.

Vinh also highlighted manufacturing gains, with Intel’s advanced 18A process now achieving yields over 60%. Although this lags behind Taiwan Semiconductor Manufacturing Co.’s 70% to 80% yield rate, it surpasses Samsung’s reported yields of less than 40%. These improvements bolster Intel’s ambition of becoming the world’s second-largest foundry, with potential future customers including Apple for low-end M-series processors starting in 2027.

So far in 2026, Intel’s stock has risen 28%, building on an 84% gain in 2025. The company’s turnaround efforts are under close scrutiny by investors. The fourth-quarter 2025 earnings report, scheduled for January 20, is expected to offer crucial insights into whether the operational improvements are translating into sustainable financial performance.

Source: NASDAQ