- Intel stock popped up by 11% on Wednesday, boosted by upbeat outlook on its foundry business
- Some analysts say Intel could potentially take a significant portion of TSMC's business
- The company's Arizona factory has already started 1.8nm chips
Intel’s stock (NASDAQ: INTC) jumped 11% on Wednesday, closing at around $48.79. This surge reversed a four-day slide and caught the eye of investors following the semiconductor industry. Let’s break down what fueled this and what it means for Intel’s stock.
Analyst Upgrades and Earnings Optimism Spark Buying
Multiple reports say Intel’s manufacturing plans might be paying off. There are talks that Nvidia and Apple may move some of their 2028 chip production to Intel’s plants here in the U.S. Landing these partnerships would be big for Intel, a company that’s been working to attract outside clients.
While Taiwan Semiconductor Manufacturing Co. (TSMC) remains their primary partner, the prospect of Intel securing even a fraction of their business is a massive validation of its manufacturing roadmap. Bernstein SocGen Group raised its price target on Intel from $35 to $36.
RBC Capital added to the positive vibe, saying that PC demand is steady and server issues will continue into early 2026. This could lead to Intel beating earnings estimates in the next report. The overall industry is also looking good. A positive forecast from Texas Instruments boosted confidence in chip stocks, easing worries about a drop in AI demand.
Also, the Department of Commerce said on Wednesday that Intel’s Arizona factories are now shipping 1.8nm chips. This strengthens Intel’s role as a key part of U.S. economic and national security amid global trade issues.
Intel Stock Prediction
Intel stock RSI has bounced sharply from an oversold 32 to a healthy 58, suggesting the momentum is currently neutral-to-bullish with room to run. The stock is currently facing its next major resistance at $50.00, a psychological and technical barrier that capped gains earlier this month. If it clears this, the path to $53.15 opens up. On the downside, support is firmly established at $44.75, aligning with the middle Bollinger Band, with a secondary safety net at $42.28.
Support and resistance levels for Intel stock daily chart on January 29, 2025. Created on TradingView
Analyst upgrades from Bernstein and RBC, along with overall industry gains from Texas Instruments and ASML, helped drive the increase. Rumors of deals with Nvidia and Apple added to the momentum.
If Intel lands Nvidia and Apple as clients, it would confirm that Intel’s manufacturing technology (Intel 18A) can compete with TSMC. It would change the perception of Intel from a struggling PC chipmaker to a global player in manufacturing for AI and mobile.
Supply problems, data center market share losses to AMD, and weak guidance for 2026 could limit gains, despite positive sentiment around AI and manufacturing potential.