Intel shares climbed to a fresh all-time high this week as investors reward the chipmaker’s turnaround, driven by a revival in its foundry manufacturing business and rising demand for its data center and AI processors.
The stock has surged more than fourfold over the past year, a remarkable reversal for a company that traded near decade-low levels around $17 a share roughly a year ago. Intel’s rally has continued even as broader chip stocks wobbled on rising expectations for a Federal Reserve rate move, with Intel, AMD and Nvidia all posting gains in recent sessions as investors broadened their bets beyond Nvidia within the AI trade.
Foundry business finding footing
Intel’s second-quarter results showed revenue of $16.13 billion, up 25.4% year over year, with data center and AI revenue surging 59%. The company’s foundry unit, which manufactures chips for outside customers in addition to Intel’s own products, is on track to add new external customers, a key metric analysts have watched closely since Intel began overhauling its manufacturing strategy.
The turnaround follows a difficult stretch for Intel, which lost significant ground to rivals in both PC and server chips over the past several years while pouring billions into new fabrication plants. Government support tied to U.S. semiconductor manufacturing incentives has also factored into investor optimism about the company’s rebuilt balance sheet.
Part of a broader chip rally
The gains for Intel come amid a wider rally in U.S. and Asian chip stocks, with companies including Micron and Marvell Technology also posting solid advances in recent trading sessions as investors position for continued growth in AI-related infrastructure spending.
Sources: 24/7 Wall St. · TechPowerUp
