Why Intel Stock Popped Today

Shares of Intel (INTC +4.04%) rose 4% on Monday following bullish analyst remarks and an intriguing acquisition announcement.

Image source: The Motley Fool.

AI agent-fueled gains

New Street Research analyst Pierre Ferragu believes investors should consider buying Intel’s stock. Ferragu sees the tech titan’s share price surging 38% to $125, driven by rising interest in agentic AI applications and a corresponding jump in sales of central processing units (CPUs).

“Agentic AI is driving a sustained increase in server CPU demand, with supply constraints set to persist for years,” Ferragu said.

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NASDAQ · As of 4:00 PM ET 10/26/26

Ferragu thinks Intel can ramp up its server capacity by over 50% in 2027. In turn, he believes the chipmaker’s data center and artificial intelligence (AI)-related revenue can exceed Wall Street’s estimates next year.

Moreover, Ferragu expects Intel’s server CPU sales to grow to $50 billion by 2030, as the overall market surpasses $220 billion. He estimates that Intel can generate $7.10 in earnings per share by that time, up from consensus estimates of roughly $1.50 in 2026.

Accelerating quantum computing

After the market close, Intel announced that it struck a deal to acquire quantum computing software developer Classiq. By integrating Classiq’s unifying software with its manufacturing operations, Intel hopes to make it easier to scale quantum computing platforms.

“Together, Intel and Classiq can help unlock the benefits of quantum computing and accelerate its adoption sooner,” Classiq CEO Nir Minerbi said.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel. The Motley Fool has a disclosure policy.

Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.