One of the last analysts with a negative rating on Intel’s stock has just changed his tune.

J.P. Morgan analyst Harlan Sur had held an “underweight” rating on Intel’s stock for nearly four years, meaning essentially that he thought other chip stocks were better bets. And even though Intel’s stock is up about 260% over a four-year span, Sur noted that it underperformed the PHLX Semiconductor Index and peer stocks like Broadcom and Advanced Micro Devices since the time he instituted the negative call.

Now Sur has a different view, with Intel shares off about 36% from their June peak, as of Friday’s close. He’s not ready to outright recommend the stock, but he no longer thinks it will be an laggard.

Since Lip-Bu Tan took over as CEO in 2025, Intel has improved the competitiveness of its data-center chips, according to Sur. Intel’s data-center and AI server segment has become the company’s largest source of profit as manufacturing and chip design have improved, he noted.

Intel’s new custom-chip business especially showcases its strength in manufacturing and the company’s intellectual-property advantage, he said. The company manufactures semiconductors for external customers and its new processing node has been a big success.

Still, some factors keep Sur from flipping completely bullish. He wants more evidence that Intel can recover after losing share of revenue in the market for central processing units relative to AMD. He’ll also be looking for more progress in data-center networking.

With Sur’s upgrade, he’s now part of the majority. About 62% of analysts have a neutral-equivalent rating on Intel’s stock, while 37% are bullish. Only one analyst tracked by FactSet — Kevin Cassidy of Rosenblatt Securities — still has a bearish rating on shares.

Shares of Intel rose 2.4% on Monday.