Intel Stock Jumps on Major Analyst Upgrade

Intel INTC shares gained 4% on Tuesday after Northland Securities lifted its rating and a report pointed to possible increases in the company's CPU prices. Northland analyst Gus Richard moved his view to Outperform from Market Perform and set a $120 price target. He cited progress in Intel's turnaround and said the company could continue benefiting from tight supply of server processors. Richard also pointed to Intel's work with Tesla TSLA on the Terafab semiconductor project as a potential boost for Intel's foundry operations, which manufacture chips for customers. Separately, DigiTimes reported that Intel could raise CPU prices by as much as 10%, citing people familiar with the matter. The potential increase would cover Intel's processor business and comes as the company seeks to improve its financial and manufacturing position. The combination of a more favorable analyst view and potential pricing changes gave Intel shares a lift in premarket trading. The report on CPU prices was separate from Northland's rating action.