⬤ Intel shares caught attention after KeyBanc Capital Markets bumped $INTC up to Overweight from Sector Weight and slapped a $60 price target on it. The upgrade's based on growing confidence that Intel's server CPU business is heading into a supply crunch, with channel checks showing the company's nearly sold out for 2026. That's a pretty significant shift in how people are viewing Intel's data center game.
⬤ KeyBanc's seeing outsized data center demand from hyperscalers this year, which they're calling a major boost for Intel's data center and AI revenue. Hyperscaler orders are picking up steam, giving Intel better visibility into future demand after a stretch of shaky enterprise spending. The firm noted this demand strength is actually broader than they initially thought.
⬤ Channel checks are pointing to Intel being close to fully booked for server CPUs next year, which sets things up nicely for better pricing power. KeyBanc mentioned that Intel's eyeing server CPU price increases somewhere between 10% and 15% given the strong demand. If that happens, it'd be a real turning point—potentially driving higher average selling prices and stronger contributions from Intel's data center and AI divisions.
⬤ This matters for the broader market because it shows hyperscale infrastructure investment is still going strong despite macro headwinds. Tight server CPU supply and rising prices signal sustained demand for compute capacity tied to AI workloads and cloud expansion. Intel's improving demand picture backs up the idea that data center spending remains a structural growth driver across the semiconductor space.
