New York, Jan 21, 2026, 16:00 EST — After-hours
- Intel shares climbed roughly 11%, reaching about $54 in late regular trading Wednesday.
- Options markets are pointing to a volatile response as traders brace for Thursday’s earnings report.
- Analysts are focused on server-chip demand and Intel’s 18A manufacturing ramp-up, while PC demand and foundry execution remain significant risks.
Intel Corp shares surged roughly 11% late Wednesday, climbing past the $54 mark. The stock gained $5.44 to settle at $54.00, having reached an intraday high of $54.13.
This move is crucial as Intel is set to report earnings after the bell on Thursday. That report could reshape expectations for CEO Lip-Bu Tan’s turnaround plan. Investors are looking for signs that demand remains steady and that the company’s manufacturing expansion won’t erode profit margins.
Options pricing indicated traders expected about an 8% move around the earnings report, even before Wednesday’s rally. Estimates gathered by Investopedia put December quarter revenue at $13.4 billion, with adjusted earnings of 8 cents per share. Wedbush analysts noted that recent headlines have had “seemingly disproportionate impacts on the stock,” highlighting concerns over competition and the risk to PC demand if component costs remain elevated. 1
HSBC upgraded Intel from “Reduce” to “Hold” and lifted its price target to $50 from $26, citing what it sees as an undervaluation of growth in traditional server CPUs — the general-purpose processors powering data centers. The bank noted a shift in AI workloads toward software “agents,” which could increase reliance on these chips, projecting a 15% to 20% rise in server CPU shipments by 2026. It also bumped its 2026 data-center revenue forecast to $19.8 billion but highlighted ongoing uncertainty around Intel’s foundry business. 2
Investors are banking on the boost to Intel’s server-chip business from fast data-center expansions, despite ongoing efforts to regain trust in its manufacturing. Reuters reports that outside capital — $5 billion from Nvidia, $2 billion from SoftBank, plus a U.S. government stake — has shored up Intel’s balance sheet and provided a runway for internal reforms.
“It’s the most optimistic, I think, people have felt about the company in a long time,” said Ryuta Makino, an analyst at Intel investor Gabelli Funds. According to LSEG data cited by Reuters, Intel’s data-center business jumped over 30% to $4.43 billion in the December quarter, while its PC unit edged up 2.5% to $8.21 billion. Investors are zeroing in on the 18A manufacturing ramp and “yield” — the percentage of usable chips per wafer — as key factors boosting gross margin. 3
Chip stocks surged with Intel leading the way. The iShares Semiconductor ETF jumped roughly 3.5%. Advanced Micro Devices saw a sharp gain near 7.7%, Nvidia moved up about 3.5%, and Micron Technology added close to 6.4%.
Intel plans to release its Q4 and full-year 2025 earnings Thursday, Jan. 22, right after the market closes. The chipmaker will follow up with a conference call at 2 p.m. PT, the company confirmed. 4
Yet, the risks here are numerous. Intel continues to lose PC market share to AMD and Arm-based chips, while analysts caution that rising memory costs could push laptop prices up and dampen demand.
Thursday’s report and Tan’s 2026 outlook are the next big milestones. Investors want clear details on server CPU pricing, updates on 18A progress, and signs that the foundry segment has sufficient customer demand to back its investments.
