Intel’s stock (INTC) surged 13% on Tuesday, closing at $108.19 after hitting a high of $110.48, on volume 65% above average. The rally pushed the company’s market cap to a record $544 billion, making it the 17th largest U.S. company and the best performer in the PHLX Semiconductor Index with a 200% gain year-to-date.
The primary catalyst was a report that Apple held exploratory talks with Intel and Samsung about manufacturing its main device chips in the United States. This would be a massive win for Intel’s foundry business, the centerpiece of CEO Lip-Bu Tan’s turnaround plan. Intel also cleared an antitrust hurdle tied to its SambaNova deal and recently beat Q1 earnings estimates with EPS of $0.29 versus $0.01 expected, while revenue rose 7.4% to $13.58 billion.
President Donald Trump, whose administration invested $8.9 billion for a 10% stake in Intel last August, claimed the U.S. has now profited $45 billion from the investment. He posted on Truth Social with a chart illustrating the gain. Despite the bullish momentum, cautionary signs include an EVP selling $4 million in shares on May 1 and analyst consensus remaining a Hold with an average price target nearly $34 below the current price.
The Intel surge highlights the growing AI infrastructure demand that could indirectly benefit crypto AI projects, though direct impact on digital assets remains limited thus far.
