Citi analyst Atif Malik has raised Intel's price target to $130 from $95, maintaining a Buy rating.
The 37% increase comes less than a month after upgrading Intel from Neutral to Buy on April 24.
The upgrade followed Intel's blockbuster first-quarter financial results.
Malik ranks third among over 12,000 analysts tracked by TipRanks, with an 80% success rate and average return of 46.7% per rating.
New Market Model Drives Valuation
The updated target is based on a new CPU total addressable market model. Citi now projects the global server CPU market will reach $132 billion by 2030.
The projection includes higher data center sales estimates and potential gains from Intel's ASIC business units.
The Mount Evans infrastructure processing unit (IPU), deployed by Google and Anthropic, is a key ASIC opportunity.
Malik wrote in a research note, "We are constructive on CPU demand as the industry moves to inference and agentic AI which need more CPUs."
This forms the basis of what Citi calls a "CPU renaissance."
Agentic AI and Enterprise Impact
Agentic AI operates autonomously, unlike early large language models that favored GPU acceleration. Autonomous software requires substantial processing power, driving CPU demand.
As enterprises deploy AI agents that reason and execute multiple tasks, data center infrastructure needs are shifting.
Intel is positioned to benefit through its Xeon server processors and custom silicon division.
The Xeon line provides a massive installed base to monetize as computing needs expand. Custom hardware demands from industry leaders also offer growth opportunities.
Intel's strategic position in enterprise data centers supports its ability to capitalize on this architectural evolution. The company's hardware lines are tailored for the emerging AI workload patterns.
