Intel and AMD both moved higher this week as AI-related chip demand and new hardware capabilities captured investor attention.
Intel closed Thursday up 3.9% at $127.39, after touching an intraday high of $127.44 on volume close to its recent daily average. The advance reflected renewed optimism around agentic AI, where systems act independently and require substantial orchestration and inference computing. Intel investors also reacted to Meta's Muse AI assistant buzz, although Meta has not confirmed any hardware deal with Intel.
Separately, Intel introduced a method of embedding micro-LEDs directly into glass substrates used for chip packaging. The company said these micro-LEDs could act as built-in diagnostic indicators, similar to dashboard warning lights, potentially helping engineers spot real-time chip failures. However, the technology adds cost and manufacturing complexity and is not expected in shipped products soon.
Intel CEO Lip-Bu Tan added another bullish data point, saying the company can currently meet only about half of customer CPU demand, signaling strong near-term demand but also capacity constraints. Analysts remain cautious: the consensus rating is Hold, with price targets roughly between $108 and $117, below Thursday's close. Intel has rallied about 293% over the past year, and higher Treasury yields have prompted profit-taking across tech names.
AMD shares rose 2% on Friday after the company announced that Perplexity's Portable Computer tool is now available on Windows PCs powered by AMD Ryzen AI Max chips, including the Ryzen AI Halo developer platform. The integration lets users run AI workloads locally, reducing reliance on Perplexity Computer credits and supporting repeat workflows without cloud inference costs.
AMD senior vice president Jack Huynh said the PC is becoming an "intelligent partner" that can understand, reason and act alongside its user. Wall Street rates AMD a Strong Buy, with 30 Buy ratings and six Hold ratings, and an average price target of $648.07.
