TLDR
- Intel stock rose 1.5% in premarket trading after reports SK Hynix is considering Intel Foundry for HBM4E base-die production
- TSMC-produced HBM4 base dies reportedly cost 3-4x more than SK Hynix’s internally made core dies
- SK Hynix said on August 31 it could not confirm details and some reported information was inconsistent with the facts
- Intel CEO Lip-Bu Tan bought approximately $10 million worth of INTC stock at $95 per share earlier this month
- INTC is up 142.5% year-to-date, with a consensus Hold rating and average price target of $116.84
Intel stock climbed 1.5% in premarket trading Monday, hitting around $89.47 at the open, after South Korean memory chipmaker SK Hynix was reported to be evaluating Intel Foundry as a supplier for base dies used in its next-generation HBM4E memory chips.
A base die is the logic chip at the bottom of an HBM stack, managing communication between memory chips and processors like GPUs. As HBM technology advances, these components are getting more complex and expensive to build.
Right now, TSMC produces the base dies for SK Hynix’s HBM4 products using a 12nm-class process. Industry sources cited in the Herald Economy report said those TSMC-produced dies can cost roughly three to four times more than the core dies SK Hynix makes internally.
That cost gap is reportedly pushing SK Hynix to look at alternatives, and Intel Foundry has emerged as a potential option.
For Intel, landing even part of that business would be a meaningful win for its contract manufacturing arm, which is still working to build out its external customer base.
SK Hynix has already shipped samples of its 12-layer HBM4E, with data speeds of up to 16Gbps per pin and improved power efficiency.
A Deal That Isn’t Confirmed
Investors should pump the brakes before reading too much into this. SK Hynix said on August 31 it could not confirm the details of its technology roadmap, and that some information in the reports was inconsistent with the facts. No deal has been announced by either company.
Still, the report was enough to move INTC in premarket, reflecting how closely the market is watching Intel’s foundry progress.
Institutional and Insider Buying Picks Up
Intel has seen a wave of institutional activity recently. Oxford Financial Group purchased a new position valued at around $1.15 million in Q2. NewEdge Advisors boosted its holdings by 29.6% in the same period, while Sei Investments grew its stake by 9.9%. Institutional investors now own 64.53% of INTC stock.
On the insider side, CEO Lip-Bu Tan bought 105,263 INTC at $95 per share on August 11, a transaction worth roughly $10 million. The stock now trades below that level.
Intel’s most recent earnings, reported July 23, came in well above expectations. The company posted $0.42 EPS against estimates of $0.21, with revenue of $16.13 billion topping the $14.43 billion consensus. Revenue was up 25.2% year over year.
Intel set Q3 2026 EPS guidance at $0.38, and analysts on average expect full-year EPS of $1.00.
On the analyst front, the stock carries a Hold consensus on TipRanks, with five Buys, 24 Holds, and two Sells. The average price target of $116.84 implies around 31% upside from current levels.
MarketBeat data shows a broader consensus of one Strong Buy, 15 Buys, 31 Holds, and three Sells, with an average target of $107.46.
INTC has surged 142.5% year-to-date, with a 12-month range of $23.68 to $142.35.
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