Intel received upgraded ratings from HSBC and Seaport Research on Tuesday. The upgrades precede the company's fourth-quarter earnings report scheduled for January 22.
HSBC raised its rating on Intel from 'Reduce' to 'Hold.' The firm nearly doubled its price target, setting it at $50, up from $26.
Seaport Research upgraded the stock to 'Buy' from 'Neutral.' It set a $65 price target.
The revisions stem primarily from increasing demand for server CPUs. This demand is driven by the growth of artificial intelligence.
HSBC analysts noted the market underestimates growth in the server sector. They also pointed to improving engagement with external customers for Intel's foundry business.
Despite the bullish notes, Intel shares were little changed in premarket trading.