SANTA CLARA, Calif. — UBS analysts have upgraded Intel Corp. to Buy from Neutral, citing the company’s recent capital raise as a strong endorsement of its foundry strategy.
In a research note published Monday, UBS raised Intel’s stock target to $45 from $35, reflecting expectations that the $20 billion capital increase will bolster the chipmaker’s push to expand domestic semiconductor manufacturing capacity. The firm described the move as a "vote of confidence" in Intel’s transition toward high-margin foundry services, which cater to external clients including major technology firms.
Intel has been accelerating its foundry ambitions under CEO Pat Gelsinger, who has positioned the company as a key player in the U.S. government’s efforts to reduce reliance on Asian chip suppliers. The capital raise, announced last month, is intended to fund expansion of advanced manufacturing facilities in Arizona, Ohio, and New Mexico, as well as research and development in process technologies such as Intel 18A and 20A.
UBS highlighted that demand for outsourced semiconductor manufacturing remains robust, particularly for advanced nodes below 5 nanometers, where Intel is targeting leadership. The firm also noted that Intel’s foundry business is gaining traction with customers, including a recent deal with Microsoft to produce custom chips for AI applications.
The capital raise follows Intel’s reported second-quarter net loss of $1.6 billion, though revenue rose 5% year-over-year to $19.5 billion. The company has been under pressure to demonstrate profitability amid heavy investment in its foundry and IDM 2.0 strategy.
UBS’s upgrade comes as Intel’s stock has underperformed peers in 2025, declining roughly 12% year-to-date amid broader semiconductor sector volatility. The analyst firm’s bullish outlook suggests growing confidence that Intel’s strategic pivot will pay off as its foundry operations scale and external demand for advanced chips strengthens.
Intel shares were indicated up 3.2% in premarket trading following the report.
