Intel Surges 58% in Nine Sessions, Adding About $100 Billion in Market Value
Summary
- Intel shares rose for nine straight trading sessions, with the stock surging 58%% and market capitalization increasing by about $100 billion.
- Intel is showing signs of a comeback, backed by major deals with Google and Tesla, a multiyear CPU supply agreement, aggressive restructuring, and an improved view of its financial stability.
- Shares of US NAND flash maker SanDisk jumped 11.83%% and have risen about 246%% this year, amid growing concerns over memory chip supply shortages and expectations for its inclusion in the Nasdaq 100 Index later this month.
Forecast Trend Report by Period
Intel comeback gathers pace as stock surges 58% in nine sessions
First nine-day winning streak since September 2023
Intel Corp., which had been seen as falling behind in the global semiconductor race, has posted a sharp rally in recent sessions. Investor optimism has grown on a string of favorable developments, including major agreements with Google and Tesla and the release of its latest central processing unit.
On June 13, Intel rose 4.49% to close at $65.18 on the Nasdaq. The stock has advanced for nine straight trading sessions. Over that span, the shares jumped 58%, increasing the company’s market capitalization by about $100 billion. It was Intel’s first nine-session winning streak since September 2023.
Recent collaboration announcements with major technology companies appear to have fueled the rally. One example is Intel’s participation in Elon Musk’s Tesla Terafab project. The planned Texas facility will serve as Tesla’s in-house semiconductor production plant, and Intel is set to supply chips to Tesla, SpaceX and xAI through the project.
A CPU shortage tied to rising artificial intelligence investment has also supported sentiment. Intel and Advanced Micro Devices Inc. are leading players in the CPU market. Intel recently signed a multiyear agreement to supply its Xeon processors to Google. “CPU and infrastructure acceleration remain a cornerstone of AI systems,” Amin Vahdat, Google’s vice president for AI infrastructure, said. Intel has been a trusted partner for the past 20 years, he added.
Investors are also pointing to an improved financial picture at Intel. Since 2024, the company has carried out aggressive restructuring, including cutting 15% of its workforce and disposing of non-core assets. Sentiment improved further after Intel decided to repurchase a stake in its semiconductor plant in Ireland. The company sold a 49% stake in the facility to Apollo Global Management in 2024. CNBC reported that the transaction showed Intel’s finances had stabilized compared with when it sold the stake.
The market is increasingly viewing Intel as showing signs of a revival after years of weak results. “Intel has now entered an expansion phase, not a survival phase,” Thomas Hayes, chairman of Great Hill Capital, said. Melius Research said Intel’s strategic value as a foundry asset is becoming clearer by the day.
US semiconductor stocks were broadly higher on the day. Shares of US NAND flash maker SanDisk jumped 11.83%, extending gains to a fourth straight session. The stock has surged about 246% this year. The move was attributed to rising concerns over supply shortages across the memory chip market and news that the company may be added to the Nasdaq 100 Index later this month.
Han Myung-hyun, Hankyung.com reporter wise@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
