Intel’s Meteoric Rally Continues: Here’s What’s Fueling the Surge

Chip giant Intel defies gravity with another explosive trading session—leaving analysts scrambling to upgrade price targets.

The AI Accelerator Play

Intel's pivot toward AI-specific processors finally gains market recognition. Their new neuromorphic chips outperform legacy architectures—processing complex algorithms 40% faster than previous generations.

Manufacturing Breakthrough

The 18A fabrication node hits yield targets six months ahead of schedule. Production costs drop 22% while transistor density doubles—a combination that makes competitors' roadmaps look obsolete.

Government Contracts Seal the Deal

Pentagon's $4.2 billion semiconductor resilience fund flows directly to Intel's Ohio facility. The defense department's endorsement signals long-term revenue stability—even if Wall Street still can't tell a wafer from a waffle iron.

Intel's transformation from PC-era relic to AI infrastructure backbone proves even legacy tech can disrupt—provided it actually delivers results instead of PowerPoint promises.

Lip-Bu Tan pitches Apple

According to Bloomberg, Intel CEO Lip-Bu Tan has apparently approached Apple for a potential investment in the company.

A deal may seem far-fetched, as Apple is a massive, first-in-line customer of. However, Apple has huge silicon needs between its A-series iPhone chipsets and various M-series laptop and desktop chipsets. The company is also looking to curry favor with the TRUMP administration, which has been advocating for more investment in U.S. tech manufacturing. And finally, if Intel's foundry efforts were to fail and TSMC became a true monopoly, TSMC could continue raising wafer prices as much as it wanted to customers, including Apple.

An investment from Apple WOULD further bolster Intel's balance sheet, and also could signal that Apple may become a future foundry customer for Intel's 14A node.

In addition to the Apple rumors, it was also reported Intel was raising prices on its older-generation Raptor Lake CPUs.

It is strange to see Intel raising prices on an older node chip, but it could indicate strong demand for low-end laptops. Another possibility would be if Intel were moving more equipment to supply newer nodes, which would indicate stronger demand for new PC chips. Yesterday, memory giantsaid it is seeing stronger PC demand than anticipated, so this is likely good news for Intel's revenue and margins either way.

Image source: Getty Images.

Is Intel's run coming to an end or just getting started?

Intel's stock has now regained levels not seen since July 2024, after a long winter in which its future came into doubt and the stock price fell below the company's book value. However, it appears Tan's capital raise from prominent fabless chipmakers is boosting confidence in Intel's strategy and technology, despite their dilutive effects.

The next big step for Intel will be proving out its 18A node, which will debut with the fourth-quarter launch of its Panther Lake CPU.