Intel Shares Jump 5% After JPMorgan Upgrade Cites Agentic AI Demand as Chip Stocks Bounce Back From Rout

NEW YORK — Shares of Intel jumped about 5% on Monday after JPMorgan upgraded the chipmaker, citing expected growth from demand for artificial intelligence agents, as semiconductor stocks rebounded from a steep sell-off.

Intel shares were up $4.53, or 5.04%, at $94.38 as of 10:26 a.m. Eastern time on the Nasdaq, making the company one of the top gainers among major chip stocks. The stock had closed Friday at about $89.85.

The gain followed a drop of more than 14% in Intel shares last week amid a broad sell-off in technology stocks.

JPMorgan upgrade

JPMorgan upgraded Intel to Neutral from Underweight, citing expected positive earnings revisions driven by demand for agentic AI and ongoing chip shortages, according to Reuters. The firm kept its price target at $85, below the stock's current trading level.

Agentic AI refers to software that can carry out tasks on its own, a fast-growing area that is expected to increase demand for computing power, including traditional processors used to run AI workloads.

Restructuring progress

Intel has been in the midst of a major turnaround effort under CEO Lip-Bu Tan. Tan said the company was about 80% through its restructuring and highlighted advanced chip packaging for AI and custom chips known as ASICs as potential growth drivers, according to Stocktwits.

Intel has been working to cut costs, improve its manufacturing operations and rebuild its position in the chip industry after losing ground to rivals. The company received a major investment from the U.S. government and a strategic investment from Nvidia in 2025, which helped boost investor confidence in its turnaround.

Broad sector rebound

The upgrade came as chip stocks broadly recovered from their worst week since March. The iShares Semiconductor ETF climbed about 3.6% in premarket trading after falling nearly 12% last week.

Lower Treasury yields and easing oil prices supported the rebound. Oil prices fell after President Donald Trump paused new sanctions targeting Russia's energy trade, reducing concerns about inflation and interest rates.

Other chipmakers, including Advanced Micro Devices, Micron Technology and Nvidia, also gained.

Retail sentiment

Despite the stock's gains this year, sentiment among retail investors on the Stocktwits platform was bearish on Intel heading into Monday's session, while it was more upbeat on memory stocks.

What's next

Intel is expected to report third-quarter results in the coming weeks. Investors will look for evidence that its turnaround is gaining traction, including progress in its manufacturing business, demand for its data center processors and the outlook for AI-related products.