Intel Corp. shares leaped to their highest intraday level since the dot-com era on Friday, fueled by mounting optimism that the chipmaker's multiyear turnaround plan is gaining traction. The stock rose as much as 1.5 percent to US$69.55, surpassing a previous peak from January 2020 and marking a 90 percent increase year-to-date, following an 84 percent surge in 2025. Intel is now approximately eight percent away from its all-time closing high of US$74.88, set on August 31, 2000.
Restoring Technological Leadership
Intel has been engaged in a concerted effort to reclaim its technological leadership after years of losing market share to rivals like Advanced Micro Devices Inc. Heavy spending on new factories amid declining revenue led to significant losses, contributing to a 60 percent drop in Intel shares in 2024. However, recent developments have sparked a renewed sense of confidence among investors and analysts.
Key Catalysts Driving the Rally
The improving sentiment stems from several pivotal moves. In early April, Intel agreed to pay US$14.2 billion to repurchase half of a plant in Ireland from Apollo Global Management, a move widely viewed as a positive step in its turnaround strategy. Subsequently, Intel announced its participation in Elon Musk's Terafab project, aimed at developing semiconductors for Tesla Inc., SpaceX, and xAI. This news followed a commitment from Alphabet Inc.'s Google to utilize future generations of Intel's Xeon processors in its data centers.
Analysts are bullish on Intel's prospects, citing near-term catalysts that could further boost the stock. Ryuta Makino, a research analyst at Gabelli Funds, noted, "Intel is very attractive," and expressed confidence that the company will announce an external customer for its foundry business this year. Wall Street speculation points to potential partnerships with tech giants like Apple Inc. or Nvidia Corp., the latter having invested in Intel last year.
Analyst Projections and Future Outlook
Ben Reitzes, an analyst at Melius Research, highlighted Intel's value as a strategic foundry asset in a note to clients on April 10, where he raised his price target for the third time this year. He anticipates the rally to continue, with the possibility of new high-profile customer announcements. Reitzes wrote, "As execution continues, gross margins climb toward the mid-40s, and external Foundry customers (potentially Apple and Nvidia) begin contributing real revenue, we believe Intel could trend toward 4x book value over time, which would imply a stock well north of US$100."
This optimistic outlook underscores a broader shift in market perception, as Intel's turnaround efforts appear to be yielding tangible results. With the semiconductor industry evolving rapidly, Intel's strategic moves position it to capitalize on growing demand in areas like artificial intelligence and data centers, potentially driving further gains in the coming months.
