Intel stock snapped a two-day losing streak on Thursday thanks in part to renewed confidence in its foundry business, which analysts increasingly view as a viable, multi-year turnaround story.

Shares of the chip maker spiked 6% to $114 after BofA Securities double-upgraded Intel to Buy from Underperform with a $135 price target, up from $96.

Analysts with the firm believe Intel could capture a larger share of the burgeoning market for server CPUs, which BofA models at $170 billion by 2030. BofA projects server CPU sales north of $40 billion by that point, or roughly a quarter of the total addressable market.

Crucially, the firm also is bullish on Intel's foundry business, which was seen as a floundering effort just last year. Although it is still unprofitable, the business is steadily gaining traction with customers. The BofA team noted that Intel is negotiating deals with major customers including Apple and Elon Musk's Terafab.