Intel not only makes a comeback in the central processing unit (CPU) competition but also in the stock market, as the CPU manufacturer is predicted to gain as much as a 30 percent share increase.

BMO Capital Market, investment banking subsidiary of Canadian Bank of Montreal, has raised its rating for Intel shares, meaning that they believe that the company will be more profitable in the near future. Cost cutting and a more reserved acquisition strategy for the CPU company will ensure that its market shares will increase as intended.

"While Intel has historically traded at below a market multiple, we believe if the company can start to demonstrate leverage in its financial model, we see the stock trading closer to a market multiple," according to analyst Ambrish Srivastava from the investment bank.

The investment bank, via Srivastava, also believes that Intel is finally addressing a facet of the business model that they have struggled with: lack of financial discipline, capital allocation, or ensuring the most optimal operating model for business. With this in mind, the investment bank has raised its target stock price for Intel from $37 to $58, a 31 percent increase. Moreover, the profit margin for Intel is expected to increase by as much as 29.2 percent next year.

Part of Intel's positive feedback from the stock market investors is due to its release of the 8th-generation flagship processor brand, nicknamed Coffee Lake. The current generation has become a lot more competitive as a response to the stellar performance of its counterpart brand, which is the Advanced Micro Devices (AMD) Ryzen. As of now, the mainstream Core i3 and i5 CPUs from Coffee Lake outperform the equivalent Ryzen CPUs in gaming, as well as other individual core-intensive applications, while the i7 CPUs trade blows with their Ryzen equivalent.

This could mean trouble for AMD as well in the CPU market since Intel is ready to present more fierce competition with its latest CPUs.