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Why Intel (INTC) Stock Is Up Today

INTC Cover Image

What Happened?

Shares of computer processor maker Intel (NASDAQ: INTC) jumped 6.3% in the morning session after reports surfaced that the company was pursuing an investment from Apple Inc. and it received a stock upgrade from Seaport Research. 

The move continued a rally from the previous trading session, which was initially sparked by a Bloomberg report about the early-stage discussions between the two tech giants. 

Following these developments, Seaport Research analyst Jay Goldberg upgraded Intel's stock to 'Neutral' from 'Sell.' While the analyst's note expressed caution that Intel was “on the wrong path with a shrinking window," it also stated the stock would likely be driven by follow-on investments in the near term. This potential investment from Apple followed a series of other capital infusions, including a reported $5 billion from Nvidia and $2 billion from SoftBank, as part of Intel's efforts to bolster its business.

Is now the time to buy Intel? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Intel’s shares are extremely volatile and have had 34 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was about 22 hours ago when the stock gained 4.9% as reports surfaced that the company approached Apple about a potential investment. According to people familiar with the matter, the talks were in their early stages and also covered how the two tech companies could work more closely together. While an agreement was not certain, the discussions were part of Intel's efforts to bolster its business.

Intel is up 64.9% since the beginning of the year, and at $33.35 per share, has set a new 52-week high. Investors who bought $1,000 worth of Intel’s shares 5 years ago would now be looking at an investment worth $667.83.

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