TLDRs;
- Intel shares surged to a record high as investors bet on a successful foundry turnaround.
- Reports of Google and Apple interest in Intel’s chip technologies boosted market confidence.
- Despite strong revenue growth, Intel’s foundry division continues to report significant losses.
- Analysts warn that valuation levels may be running ahead of actual contract wins.
Intel (INTC) stock surged to a record high during Thursday trading, driven by renewed optimism that the company’s long-term foundry strategy may finally be gaining traction. The rally reflects growing investor confidence that Intel’s push into advanced chip manufacturing could reposition it as a key player in the global AI semiconductor supply chain.
Shares climbed sharply following reports suggesting major technology companies are evaluating Intel’s advanced packaging and process technologies for next-generation artificial intelligence chips. The move has intensified speculation that Intel’s costly foundry division may soon secure high-profile external customers, marking a critical step in its transformation strategy.
At the same time, investors are increasingly viewing Intel not just as a legacy CPU provider, but as a potential manufacturing backbone for the AI era. The shift in sentiment has been one of the strongest drivers behind the stock’s recent breakout.
Record rally fuels market optimism
Intel shares jumped more than 12% to reach approximately $94.75, marking a fresh all-time high. The surge followed a broader rally triggered by last week’s earnings beat and accelerating enthusiasm around AI-linked semiconductor demand.
Market participants pointed to growing expectations that Intel’s foundry business could begin attracting meaningful external clients. This division, while still operating at a loss, is central to Intel’s long-term turnaround plan and its ambition to compete with established contract manufacturers in advanced chip production.
Google and Apple interest boosts sentiment
Investor excitement intensified after reports indicated that Google may consider Intel’s EMIB (Embedded Multi-die Interconnect Bridge) technology for future Tensor Processing Units used in AI workloads. These chips are critical for both training and inference in large-scale AI systems.
In parallel, Apple is reportedly evaluating Intel’s advanced 18A-P manufacturing process for future custom silicon designs. While neither company has confirmed formal supply agreements, the possibility of renewed engagement from two of the world’s largest tech firms has significantly boosted sentiment around Intel’s capabilities.
Intel already maintains a strategic relationship with Google through existing infrastructure partnerships, further reinforcing expectations that deeper collaboration in AI hardware could emerge over time.
Foundry losses remain a concern
Despite the optimism, Intel’s foundry division continues to weigh on overall profitability. The segment recently reported $5.42 billion in revenue for the quarter but still posted a $2.44 billion operating loss, highlighting the high cost of scaling advanced manufacturing capacity.
Management has acknowledged that the turnaround will require sustained demand from external customers, particularly in AI and high-performance computing markets. Without sufficient long-term contracts, analysts warn that parts of Intel’s next-generation manufacturing roadmap could face delays or even reconsideration.
Broader AI competition intensifies
Intel’s rally comes amid increasing competition across the semiconductor industry. Rival firms continue to expand aggressively into AI chip design and manufacturing, while demand for GPUs and CPUs remains tightly contested between major players.
At the same time, valuation concerns are beginning to surface. Intel’s rapid price appreciation has pushed forward earnings multiples to elevated levels compared to peers, raising questions about how much future growth is already priced in.
Still, executives argue that the AI-driven shift in computing architecture is only beginning, and that central processors will play a larger role in inference workloads than previously expected.
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