Key Points
- Intel’s stock has reached its highest price in 18 months. The recent gains are driven by a report that Intel may manufacture chips for its rival, AMD.
- The stock is up 80% this year, thanks to major investments from the U.S. government, Nvidia, and SoftBank.
- The news is renewing investor confidence in a potential turnaround for the struggling company.
- Technical indicators are bullish, but also suggest the stock might be due for a short-term pullback.
Intel’s stock has been on a tear, hitting its highest level in 18 months as a wave of good news breathes new life into the struggling chipmaker. The latest jump came after a report that Intel is in talks to manufacture chips for its longtime rival, AMD.
This is just the latest in a series of positive developments that have sent Intel’s shares soaring. The stock jumped nearly 40% in September and is up about 80% for the year. A flurry of high-profile investments from the U.S. government, AI darling Nvidia, and Japanese investment giant SoftBank has fueled this rally.
The momentum picked up even more after reports that Intel is also seeking investments from Apple and the world’s leading chipmaker, TSMC.
All this new money and the potential AMD deal are renewing hopes that Intel can finally turn things around under its new CEO, Lip-Bu Tan, who took over in March. The once-dominant chipmaker has been losing market share for years, but this sudden flood of investment and strategic partnerships suggests a major comeback could be in the works.
From a technical perspective, Intel’s stock chart is showing strong upward momentum. It recently formed a “golden cross,” a bullish signal for traders. However, some indicators suggest the stock is in “overbought” territory, which could mean a short-term pullback is possible.
