New York, May 18, 2026, 10:04 EDT
Intel shares rose slightly early Monday in New York after last week’s chip-stock rout. Investors took in new analyst price targets, comments from President Donald Trump on the government’s stake, and more debate over the AI trade’s room to run.
The stock last traded up 0.3% at $109.10, moving between $106.81 and $115.20 so far. The iShares Semiconductor ETF dropped 0.9%. Nvidia lost 0.2%. Advanced Micro Devices was flat.
Intel isn’t just a turnaround trade at this point. It’s also a sign of whether investors are still interested in AI plays tied to CPUs—the main chips that drive servers and computers—or if most of the attention is sticking with Nvidia-type GPUs.
Intel’s early trade came with some help from the market. The S&P 500 and Nasdaq both started out higher with chip stocks bouncing and bond selling easing, according to Reuters. But the sting from Friday was still there—Intel sank 6.2% that session while the Philadelphia semiconductor index slid 4% as inflation concerns and rising Treasury yields weighed.
Trump gave the stock more political attention, telling Fortune he “should have asked for more” from Intel for the U.S. government, Reuters reported. The Trump administration grabbed a 10% stake in Intel last year and put up around $10 billion connected to U.S. manufacturing projects. Reuters said that government stake in Intel has now climbed to over $50 billion. Reuters
Wall Street analysts bumped up their Intel targets on paper. Citi’s Atif Malik set his new price target at $130, up from $95. Benchmark’s Cody Acree went to $140, Barron’s said. But Barron’s also noted that Intel was still headed for a five-day losing streak in premarket trading before trying to rebound Monday.
Intel posted first-quarter revenue at $13.6 billion, a 7% jump from last year. The chipmaker put its outlook for the second quarter between $13.8 billion and $14.8 billion. Revenue in Data Center and AI was up 22%. Contract chip manufacturing, Intel Foundry, gained 16%.
Chief Executive Lip-Bu Tan said the new wave of AI is “increasing the need for Intel’s CPUs.” Finance chief David Zinsner said there is “unprecedented demand for silicon.” Intel gives both non-GAAP earnings and standard results. Non-GAAP numbers remove some costs that management says aren’t part of the core business. Business Wire
Intel’s grip on the server CPU market loosened in the first quarter, with share dropping to 54.9%, UBS analysts said, quoted by Barron’s. AMD climbed to 27.4% while Arm took 17.7%. The gain in AI demand hasn’t stopped rivals from chipping away at Intel’s position.
Valuation risk is another concern here. Michel Lerner, who leads HOLT at UBS, said markets might be treating AI companies as if they are “immune to normal competitive dynamics.” HOLT is the UBS tool for looking at corporate performance and valuations, using cash flow return on investment—cash profit against capital in. Barron’s
Semis look stretched. Reuters said last week the Philadelphia Semiconductor Index jumped 64% since March 30 and Intel almost tripled. Michael O’Rourke, chief market strategist at JonesTrading, told Reuters semiconductors have enough S&P 500 weight that “any correction or any disappointment creates risk” for the broader market. Reuters
Intel’s next update lands Tuesday, with Tan set to speak at the J.P. Morgan Global Technology, Media and Communications Conference. Investors want details on Intel’s strategy, its manufacturing roadmap, and whether AI demand will drive profit or only add revenue.
Intel could run into trouble if bond yields don’t fall, oil keeps inflation going, or AMD and Arm keep picking up steam in server chips. That puts a cap on what investors may pay for each dollar of Intel’s likely profit. The stock would be vulnerable even if the AI spend argument still holds up.
