Intel Stock Eyes $50 If Key Resistance Broken Tomorrow, as Partnerships Keep Coming
Intel’s rally has accelerated this week, fueled by fresh investor enthusiasm, government backing, and prospects for strategic partnerships..
Quick overview
- Intel's stock has surged over 55% since early September, driven by strong investor support and government backing.
- The U.S. government's investment in Intel has nearly doubled in value, reflecting renewed market confidence in the company's turnaround.
- Speculation about potential partnerships with AMD could significantly alter the semiconductor landscape, though details remain scarce.
- Investor optimism is further fueled by interest from major companies like SoftBank, Nvidia, and Apple, suggesting a potential resurgence for Intel.
Live INTC Chart
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Intel’s rally has accelerated this week, fueled by fresh investor enthusiasm, government backing, and prospects for strategic partnerships that could reshape its standing in the semiconductor industry.
A Week of Breakouts and Investor Confidence
Intel’s upward momentum continued this week as shares climbed sharply, building on weeks of gains sparked by robust investor support and reports of new alliances. The U.S. government’s initial August investment of $8.9 billion in Intel has nearly doubled in value to $16 billion, thanks to the company’s stock price soaring more than 55% since early September.
On Thursday, Intel’s stock jumped another 4%, surpassing a key technical resistance level and opening the path toward reclaiming its 2024 highs above $50. This milestone followed last week’s breakout above the 200-week simple moving average (SMA) near $37, which had previously acted as a ceiling on price gains.
The government’s 10% stake—purchased at $20.47 per share—has grown substantially in just two months, underscoring renewed market confidence in Intel’s turnaround story.
Speculation Around AMD Foundry Talks
Thursday’s rally followed a 7% surge on Wednesday, driven by reports of preliminary discussions between Intel and AMD about making AMD a potential foundry client. While few details have emerged, such a collaboration would be a significant shift for the semiconductor landscape. Key questions remain about how much of AMD’s production could migrate to Intel and whether AMD might make a direct capital investment as part of the deal.
Technical Barriers and Long-Term Prospects
Intel’s (NASDAQ: INTC) stock has more than tripled in just two months, jumping from below $19 to close at $37.30 on Thursday. On the monthly chart, buyers now face resistance at the 50-month SMA (yellow), which halted the stock’s advance earlier in 2024. Should Intel surpass this level, the next technical hurdle sits above $50, aligning with the company’s previous peak earlier this year.
Broader Backing Fuels Recovery Hopes
Investor optimism has also been buoyed by reports that SoftBank, Nvidia, and Apple could explore future investments or partnerships with Intel. After years of ceding ground to competitors like TSMC and AMD, these developments have reignited hope that Intel might reclaim its leadership in chip manufacturing.
The company’s resurgence signals that the once-dominant semiconductor pioneer may be preparing for a significant comeback, with renewed government support and private-sector interest positioning it for longer-term competitiveness.
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