Intel Among Top Wall Street Gainers, Leads Chip Comeback With 10% Shares Spike

Intel shares surged nearly 10% on Thursday, putting the chipmaker among the top gainers on Wall Street as semiconductor stocks extended their rebound from an early-week selloff.

Intel stock climbed as much as 9.7% to $110.84 during Thursday's session, after closing at $101.05 on Wednesday. The broader chip sector also rallied, with Marvell Technology, AMD, Arm Holdings, Micron Technology and Sandisk among the stocks posting strong gains.

The latest move comes amid continued investor interest in Intel's turnaround and reports that South Korean memory-chip maker SK Hynix is in exploratory talks with Intel to manufacture memory chips in the US.

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According to Reuters, the potential arrangements could include SK Hynix leasing part of Intel's planned Ohio manufacturing complex or forming a joint venture involving Intel and major cloud companies. No agreement has been finalised, and SK Hynix has said that no specific decision has been made.

The reports have strengthened expectations that Intel could find an external customer for its US manufacturing ambitions. Intel's Ohio project has faced delays, making potential utilisation of the facility a key focus for investors.

Analyst actions have added to the positive sentiment. Investing.com reported that Tigress Financial raised its price target on Intel to $145 from $118, while Northland upgraded the stock to Outperform with a $120 target. Melius Research also pointed to potential upside from Intel's foundry business.

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D.A. Davidson managing director Gil Luria told MarketWatch that falling oil prices and Treasury yields were easing some of the concerns that had emerged after the Federal Reserve's latest rate decision. He said the data-centre buildout is sensitive to interest rates, making any moderation in rate expectations supportive for semiconductor companies.

Intel's latest rally follows a sharp recovery across chip stocks after concerns earlier this week that a slowdown in AI development could hurt semiconductor and data-centre spending. Wall Street analysts have since pointed to continued underlying demand for AI infrastructure.

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