Intel Corporation shares continued their upward trajectory, closing Friday at $124.57, a gain of 6.51%. The stock traded between $115.33 and $127.60 during the session, approaching its 52-week high of $132.75. Market capitalization now stands near $626 billion, with over 151 million shares changing hands, indicating strong buying interest. The rally reflects growing investor confidence in Intel's turnaround story, particularly its foundry ambitions.
Foundry Optimism Drives Rally
The latest surge is fueled by reports that Google has ordered over 3 million custom TPUs from Intel for 2028, according to Reuters. Additionally, Nvidia is reportedly evaluating Intel products for future chips, though Reuters noted this could not be independently confirmed. These developments underscore Intel's potential as a U.S.-based alternative to Taiwan Semiconductor Manufacturing Co. (TSM) in high-end foundry services.
Bank of America Upgrade Adds Fuel
Bank of America analyst Vivek Arya double-upgraded Intel to Buy from Underperform, raising the price target to $135 from $96. The upgrade cited increased clarity around server CPUs and external foundry deals, as reported by Investopedia and Barron's. Despite this, the stock now trades above the consensus analyst target of $93.12, with a consensus rating of Hold.
Financial Performance and Risks
Intel's first-quarter revenue rose 7% to $13.6 billion, with Data Center and AI revenue jumping 22% to $5.1 billion. Intel Foundry revenue increased 16% to $5.4 billion. CEO Lip-Bu Tan noted that demand for inference and agentic AI is significantly boosting need for Intel's CPUs and advanced packaging. CFO David Zinsner highlighted unprecedented demand for silicon. However, the company still reports negative net income, and price-to-earnings ratios are not applicable due to negative EPS. The turnaround remains unproven on a profitability basis.
Market Context
The PHLX Semiconductor Index rose 1.52% on June 12 to close at 13,371.47, indicating that Intel's gains occurred within a broader chip sector rally. Semiconductor stocks have been volatile as investors debate whether AI-related spending can sustain elevated valuations.
Upcoming Earnings in Focus
Intel's second-quarter earnings, expected on July 23, 2026, are the next major catalyst. The company guided Q2 revenue between $13.8 billion and $14.8 billion, with non-GAAP EPS of $0.20. Investors will focus on cash flow, foundry margins, customer contracts, and updates on 18A and 14A manufacturing timelines.
Outlook
Intel's sharp run-up has increased risk. Bulls point to AI server demand and foundry traction, while bears highlight valuation, negative earnings, and execution risk. The stock's next move hinges on whether Q2 results can convert the turnaround narrative into tangible financial improvements.
