Intel Corporation's stock reached its highest level in nearly two years during Tuesday's trading session. The share price climbed to an intraday peak of $48.24 before settling at $47.29, representing a gain of 7.33 percent for the day.
Investment firm KeyBanc published a market report recommending an "overweight" position on Intel shares. The firm set a price target of $60 for Intel, suggesting potential upside of 27 percent from Tuesday's closing price.
KeyBanc's analysis pointed to stronger-than-expected demand in data centers as a primary factor. The report noted that Intel has already sold out its server CPUs scheduled for production in 2026.
The firm also cited tightening memory supply within the semiconductor industry, with DRAM and NAND prices reportedly increasing by 10 to 15 percent. KeyBanc mentioned that demand from hyperscale customers is currently disrupting supply chains.
Additionally, the investment firm considered Intel's improving manufacturing yields in its assessment. The report stated that Intel's 18A process now exceeds 60 percent yield, which the firm described as sufficient to support production of the Panther Lake processor.
Intel is scheduled to release fourth quarter and full-year 2025 earnings results after market close on Thursday, January 22. Investors are expected to focus on the company's business outlook for 2026.