Intel (INTC) shares climbed about 4% in Monday's premarket session after JPMorgan upgraded the chipmaker, spearheading a technology rebound following last week's broad market selloff. Fellow semiconductor stocks AMD and Micron each gained roughly 3% as investors returned to the sector at the start of the week.

JPMorgan Lifts Intel to Neutral, Maintains $85 Target

JPMorgan analyst Harlan Sur raised his rating on Intel to Neutral from Underweight while keeping an $85 price target on the stock. On Wall Street's rating scale, a Neutral call signals the analyst expects shares to perform roughly in line with their sector, whereas the prior Underweight view anticipated below-sector performance. The move came after Intel shares had fallen 36% from their June peak, a decline that brought the price closer to the analyst's target.

Sur cited better execution under Chief Executive Lip-Bu Tan, rising demand for AI-related processors, and limited supplies of advanced chips. He nonetheless continues to expect Intel to lose further ground in the server market, the data-center segment that has long been among the company's largest revenue pools and a recurring focus for investors tracking its turnaround.

Other semiconductor names also recovered on Monday. Nvidia shares had slipped last week even as the company rolled out new AI model offerings. The buying followed heavy losses across chipmakers: the Nasdaq fell 4.5% last week, while the information technology sector lost more than 6%. Goldman Sachs said hedge funds sold technology stocks by the largest percentage on record, a positioning datapoint that shows how far institutional investors had retreated from the sector before Monday's bounce.

Nasdaq and S&P Futures Recover From Selloff

Nasdaq-100 futures advanced 1.3% ahead of Monday's opening bell, while S&P 500 futures gained 0.5%. Dow futures slipped 0.2%, leaving the rebound concentrated in technology rather than extending across the broader market.

CoreWeave, an AI cloud-infrastructure provider, rose about 6% before the open after Goldman Sachs upgraded the stock, despite continued concerns over its borrowing costs. The company fell roughly 25% last week as investors questioned its financing expenses; recent reporting on CoreWeave's debt tracked bond yields near 15%. Goldman maintained that CoreWeave could finance its expansion even as it lowered its price target. The company has borrowed to build AI data centers, making interest rates an important cost item and its financing terms a closely watched marker for how the broader AI data-center buildout is being funded.

Technical levels offered another test for the rally. Nasdaq-100 December futures faced a 50-day average near 30,175, while S&P 500 futures met resistance around 7,775. Both markets retained downward trends on their daily charts, meaning Monday's gains still needed to clear those long-running momentum markers before a chart-based recovery could be confirmed.

AI Earnings Put Technology Rebound to the Test

Amazon advanced after Morgan Stanley raised its price target to $350 and named the retailer a top pick. Datadog also gained on a Bernstein upgrade, while Cleveland-Cliffs rose after better-than-expected quarterly results.

Meta and Tesla are scheduled to report quarterly earnings later this week, and the results will give investors new information about technology spending and business performance. Ahead of its report, Meta's third-quarter revenue outlook called for $61 billion to $64 billion, drawing attention to advertising sales and spending on AI. How those prints land against expectations, and whether futures can push past the technical ceilings noted above, will shape whether the week extends the rebound or leaves last week's losses in place.

Source: Blockonomi