Bank of America (BofA) upgraded Intel’s credit rating to Overweight from Marketweight. BofA cited improved financial stability, stronger liquidity, and a more compelling relative valuation as key drivers.
Analysts noted that Intel’s lower exposure to the artificial intelligence demand cycle could protect the company. This positioning shields Intel from potential overheating concerns in the broader AI investment landscape.
The upgrade follows a notable improvement in Intel’s credit metrics during the third quarter. Proceeds from asset sales and equity investments bolstered these metrics, allowing Intel to achieve positive free cash flow (FCF) for the first time since 2023.
Based on these factors, BofA increased its EBITDA estimates for Intel. The firm raised the fiscal year 2025 estimate by 20% and the fiscal year 2026 estimate by 18%.