This article first appeared on GuruFocus.
Intel (INTC) shares jumped about 10% on Monday as investors returned to semiconductor stocks amid renewed confidence in artificial intelligence spending and improving market sentiment.
The gain came as crude oil prices and U.S. Treasury yields moved lower, easing pressure on growth-oriented technology companies. The broader chip sector also advanced as investors reassessed concerns that AI infrastructure spending could slow in coming years.
Recent developments have continued to support expectations for sustained AI-related demand. Reports indicating sizable future investments in computing infrastructure by major AI companies have helped reinforce the outlook for processors and data-center hardware.
Intel has also received support from Wall Street in recent sessions. Melius Research initiated a Buy rating on the stock, while Tigress Financial raised its price target, citing opportunities tied to AI servers, foundry expansion and advanced manufacturing technologies. Reports that SK Hynix is exploring a potential manufacturing arrangement involving Intel’s Ohio facility have also drawn investor attention.
The stock’s rally extends a strong recent run as investors weigh Intel’s turnaround efforts and its potential role in meeting growing AI-related computing demand.