According to a research report by BofA Securities, Intel demonstrated solid performance and a positive outlook for the first quarter, primarily driven by increased demand for server CPUs and improved pricing power, which in turn fueled the growth of surrogate artificial intelligence workloads. However, Intel also faces challenges such as low gross margins and ongoing cash burn, with a negative free cash flow of $2 billion in the first quarter. Based on this, BofA Securities has raised its earnings per share forecasts for Intel from 2026 to 2028, increasing the target price from $48 to $56, while maintaining an 'Underperform' rating. BofA Securities believes that expectations for Intel's recovery are already fully reflected in its stock price, and its average annual compound revenue growth rate from 2025 to 2028 is significantly lower than that of its peers. Additionally, Intel's foundry business still requires time to prove its viability. In contrast, BofA Securities favors companies like Nvidia, which are experiencing rapid growth and have demonstrated proven execution.