Why Intel stock just got a big upgrade

After a sweeping tech stock sell-off last week, Wall Street is on the hunt for bargains.

And JPMorgan ( JPM ) may have found one in chip giant Intel ( INTC ), with the stock off about 36% from the June highs. Analyst Harlan Sur upgraded his rating on Intel to Neutral from Underweight on Monday.

Intel stock rose 4% in premarket trading.

Here are several of Sur's thoughts that stood out:

CEO is driving fundamental change: "More importantly, since Lip Bu Tan's appointment to CEO, we believe the team's execution and competitiveness in their core client/datacenter compute market has improved, the team's execution on next-gen manufacturing has significantly improved (yields, manufacturability, foundry process/design rule compatibility, advanced packaging) and the team has several initiatives (ASICs) which exploit INTC's strong IP portfolio, SOC design capabilities, and leading edge internal manufacturing capabilities."

Estimates could be poised for lift-off: "Despite near-term concerns on AI infrastructure spending sustainability, we believe increasing agentic AI workloads (CPU intensive) and a very tight supply chain for leading edge silicon should drive continued positive EPS revisions in the upcoming earnings season and through CY27 (our CY28 EPS estimates are ~15% above consensus)."

Brian Sozzi is Yahoo Finance's Executive Editor, host of the Sozzi Unleashed morning show and the Power Players with Brian Sozzi podcast, and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi , Instagram , and LinkedIn . Tips on stories? Email brian.sozzi@yahoofinance.com.