Intel Surges Over 4% After Seaport Global Upgrade
Analyst revises rating from 'Sell' to 'Neutral' citing strategic shifts and a potential revaluation of the chipmaker's core business.
Intel (INTC) shares jumped more than 4% on Thursday, propelled by massive trading volume after a notable analyst upgrade suggested a significant potential upside for the semiconductor giant.
Seaport Global Securities raised its rating on Intel's stock from 'Sell' to 'Neutral,' a move that sparked a flurry of buying activity. The stock traded hands over 265 million times, more than double its recent average daily volume. The upgrade was driven by a reassessment of the company's valuation and potential strategic changes on the horizon.
The core of Seaport Global's thesis is that Intel's product division may be severely undervalued by the market due to the negative perception surrounding its costly foundry operations. In a note to clients, the firm suggested that to divest its fabrication facilities. Analysts at Seaport believe that if valued separately, the company's market capitalization could potentially more than double.
This potential strategic shift comes amid a broader recovery in the semiconductor industry. The , fueled by surging demand from artificial intelligence workloads and a shift toward high-performance products like High-Bandwidth Memory (HBM). This favorable industry backdrop provides a tailwind for major players like Intel as they navigate complex turnarounds.
Adding another layer to the bullish sentiment, Seaport Global also pointed to potential investment interest from major technology companies. The firm noted that could be a driving force for the stock. While Seaport analysts described Intel's turnaround as a "deeply complex, painful process," the upgrade signals a significant change in sentiment, suggesting that strategic actions could unlock substantial value for shareholders even as the company works to regain its manufacturing leadership.