:max_bytes(150000):strip_icc()/GettyImages-2240015417-cb1565cbbcd94f579d0fd6bfcfc14be5.jpg "Intel Rallies Ahead of Earnings. Here’s What Analysts Are Saying That’s Boosting the Stock.")
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Key Takeaways
- Intel shares popped Wednesday, adding to their recent gains amid growing optimism about demand ahead of the chipmaker’s earnings report due Thursday.
- Wednesday’s rise brought Intel’s stock to its highest level in four years.
Intel’s stock has been on a tear lately, as expectations grow ahead of the chipmaker’s quarterly results due after the closing bell Thursday.
The shares jumped nearly 12% amid a broad market rally to close above $54 Wednesday, extending the stock’s recent gains as several Wall Street analysts pointed to signs of better-than-expected demand for the company’s AI products.
HSBC, KeyBanc, and Wedbush told clients this week that they see Intel’s (INTC) outlook and results beating consensus projections, driven by stronger-than-expected sales of its server CPUs used in data centers.
KeyBanc also voiced more optimism about Intel’s ability to win Apple (AAPL) as a foundry customer, after months of rumors that the iPhone maker could become a new client.
Why This Matters to Investors
A strong showing from Intel’s results Thursday could help reinforce confidence in Intel’s stock. Despite recent gains, the shares remain off their highs amid lingering uncertainty about the struggling chipmaker’s business.
Still, most Wall Street analysts have maintained a cautious tone on the stock, suggesting its recent surge could be premature before seeing more evidence of progress in the company’s turnaround. Of the eight analysts with current ratings tracked by Visible Alpha, only KeyBanc has recommended buying the shares, compared to six neutral and one “sell” rating.
Shares of Intel, which have added nearly half their value in January alone, have already surpassed the consensus price target at $44.75.
