With Mizuho Securities upgrading its rating on the semiconductor maker’s stock to “buy,” and citing prospects of increased revenue from forthcoming chips and new production facilities, Intel’s shares surged by nearly 7% on Thursday, reaching their highest level in 17 months.

According to an investor note released on Wednesday by Mizuho analysts led by automotive and semiconductor specialist Vijay Rakesh, Intel is expected to unveil a new data center and artificial intelligence chips in 2024, marking one of its most “prolific product launches in years” in addition to opening new chip-making facilities known as foundries.

The price target for Intel’s shares was increased by Mizuho from $37 to $50 and the company was upgraded from “neutral” to “buy”.

Intel’s stock closed up 6.7% to $43.35 on Thursday after rising as high as $43.39, the highest level since June 2022. To date, the stock has increased by 64%.

“We believe (Intel) is lining up significant new server product launches and foundry customer announcements in the next six months,” the analysts stated.

The average analyst price target for Intel is $38, up from $35.50 in October, and LSEG data shows that the consensus opinion is to “hold” the stock.

Other well-known chip manufacturers like Nvidia, Broadcom Inc., Advanced Micro Devices, and Samsung Electronics compete with Intel for market share.

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