Intel Corporation's stock climbed 4.9% on Friday, closing at $50.59 and reclaiming a key psychological level above $50. The advance was part of a broader rally across the semiconductor sector, fueled by heightened demand for artificial intelligence hardware and increased capital expenditure announcements from major technology firms.
Supply Constraints in China
According to a Reuters report, Intel has informed certain customers in China that wait times for some server central processing units (CPUs) could extend up to six months. The company attributed the supply crunch to surging demand driven by rapid AI adoption, which has also increased orders for traditional computing products. Intel indicated inventory would reach its lowest point in the first quarter, with conditions expected to ease by Q2.
Strategic AI Investment
In a separate development, Intel is participating in a funding round for AI chip startup SambaNova Systems, committing approximately $100 million. The investment focuses on inference chips, a critical segment for deploying trained AI models. This move aligns with Intel's broader strategy to expand its data center GPU business, a initiative recently highlighted by CEO Lip-Bu Tan.
The positive sentiment for chipmakers was reinforced by industry data. The Semiconductor Industry Association forecasts global semiconductor sales to hit $1 trillion this year, following a 25.6% surge to $791.7 billion in 2025, largely propelled by AI investments from tech giants.
Market participants will now turn their attention to upcoming economic indicators, including the U.S. Employment Situation report and Consumer Price Index data, which are known to influence bond yields and, by extension, technology sector valuations. The focus for Intel will be whether its shares can maintain their footing above the $50 threshold in the week ahead.
