This week, Intel's stock price surged significantly, but Wall Street remains reserved about whether the company has fully recovered. Intel's shares skyrocketed by 51% over eight trading days, with a nearly 25% increase by Friday noon, making it one of the most overvalued stocks in the market.
The rebound was driven by traders flocking to chip stocks, while the overall market also rose on hopes of a fragile ceasefire agreement between the U.S. and Iran. The Nasdaq Composite Index increased by 4.7% this week, the S&P 500 rose by 3.6%, and the Dow Jones Industrial Average added 3%.
Intel's relative strength index (RSI) last week was 75, indicating it is in a highly overbought state.
Google Expands Partnership with Intel, Linking Chipmaker to Musk's Texas Plant
Google announced it will use multiple generations of Intel central processing units (CPUs) in its artificial intelligence data centers, marking a further deepening of the relationship between the two companies.
However, the more challenging question is whether Intel's business can sustain the rise in stock price over the long term. Intel's future depends not only on past performance but also on whether its upcoming products, factory management, and execution can deliver better results. To this end, Intel has acquired a 49% stake in the Apollo joint venture at Fab 34 in Ireland.
Intel agreed to pay $14.2 billion in cash and $6.5 billion in transition loans, pending completion of subsequent financing. Once the deal is finalized, all manufacturing operations in Ireland will be directly controlled by Intel.
Intel Strives to Rebuild Its Server Lineup, Funding Cuts and Other Companies Entering the Market
Meanwhile, TD Cowen estimates that by the fourth quarter of 2025, only about 20% of Intel's x86 server CPU sales will come from its third-generation performance chips. This indicates that current sales are still dominated by tenth and seventh-generation x86 server products.
The company also stated that improvements are expected in the second half of 2025 with Diamond Rapids, and some progress is anticipated in the second quarter. These chips are related to the second-generation Platinum series, but their series setup differs from the products currently being sold.
Subsequently, Coral Rapids is expected to launch in the second half of 2026 or later. This series could redefine the competition for x86 server CPUs, but prices may be lower than current products.
Other companies are also increasing or opening new positions. Corundum Trust Company initiated a position of about $29,000 in the third quarter, while Raleigh Capital Management opened a position of the same value in the fourth quarter. Provenance Wealth Advisors increased its holdings by 89.2%, adding 446 shares for a total of 946 shares, valued at approximately $32,000.
Strengthening Families & Communities opened a position of about $33,000, while GoalVest Advisory initiated a position of about $34,000. Overall, 64.53% of Intel's shares are held by institutional investors.