Intel shares closed at $47.29 on Tuesday, marking a 7.33% increase for the day. Trading volume reached 167 million shares, well above the three-month average of 90 million shares.
The movement followed an upgrade from KeyBanc, which raised its rating on Intel to Overweight and set a price target of $60. Investors focused on whether AI-driven demand for server CPUs could maintain tight supply and pricing power into 2026.
During the trading session, reports indicated that Intel's AI and data center CPUs are largely sold out for the year. These developments contributed to ongoing discussions about Intel's potential turnaround by 2026.
Other semiconductor companies also saw gains. Advanced Micro Devices rose 6.39%, while Nvidia edged up 0.47%. Traders monitored AI data-center chip demand across the sector.
Broad market indices showed slight declines. The S&P 500 slipped 0.19% to 6,964, and the Nasdaq Composite edged down 0.10% to 23,710.
Investors await Intel's Q4 and full-year 2025 results, scheduled for release after market close on January 20. The report will provide updates on AI momentum, cash burn, and progress in the foundry business.